Is Australia a 'gigantic bubble'?

I don't have a link (can't be turtled) but I have read that commodities are the last asset class to boom/bubble/appreciate
 
hiho said:
The day "is not far away" when the currency could fall to 50 cents against the dollar, he said.
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OUCH




It'd be silver for me from then on methinks :o
 
hiho said:
The day "is not far away" when the currency could fall to 50 cents against the dollar, he said.
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Ironically, in a currency race-to-the-bottom, that would see us....
179_winning.jpg
 
Always thought we were in big trouble.
Most expensive real estate in the world,most favorite
currency to gamble,resources not needed in downturn ,huge debt.
But when AUD falls to 50%,my PM will double in AUD.

$3200 AUD an oz,anyone?
 
Peter said:
Always thought we were in big trouble.
Most expensive real estate in the world,most favorite
currency to gamble,resources not needed in downturn ,huge debt.
But when AUD falls to 50%,my PM will double in AUD.
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Sydney (11), Melbourne (15) and Perth (19) now rank among the world's most expensive cities, while London languishes in 25th spot and New York in 33rd, according to the Mercer Worldwide Cost of Living Survey 2012 released this month.

Read more: http://www.smh.com.au/opinion/socie...ney-for-nyc-20120625-20yh2.html#ixzz1ys0FrrT0

That said, I can answer the question "Is Australia a 'gigantic bubble'?" in two words :

Well Duh!

(and one of them I am not sure really qualifies as a 'word' either)

Australia has been going down the proverbial since 1995 with only the irrational exuberance of the debtors keeping the parting going.

But whatever. Everyone has their own spin and will continue to do so all the way to the end.

Enjoy it Australia - it's what you voted for.
 
I have a contrary perspective that pushes the AUD higher (together with gold) as the major currencies devalue and lose safe-haven status. This may be brief though and if it does happen, the end will come swiftly. If the AUD reaches USD1.20, then we know the fiat collapse is on our doorstep, maybe even in our beds. And not even the "reds" couldn't manage to get that far.

It reminds me of that video we had ages ago about the guy who BBQ'd up some guinea pigs for lunch:

"Doonk to ze back of ze head. Finished."
 
mmm....shiney! said:
I have a contrary perspective that pushes the AUD higher (together with gold) as the major currencies devalue and lose safe-haven status. This may be brief though and if it does happen, the end will come swiftly. If the AUD reaches USD1.20, then we know the fiat collapse is on our doorstep, maybe even in our beds. And not even the "reds" could manage to get that far.

It reminds me of that video we had ages ago about the guy who BBQ'd up some guinea pigs for lunch:

"Doonk to ze back of ze head. Finished."
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I agree. Commodities would have to fall a long way for the investment flows to stop and the Fed et al would print for sure to prop things up pushing commodities back up again.
 
Australia's main exports are coal and iron ore, both are closely tied to global economic growth. It won't take much drop in demand to see the Australian economic bubble burst.

It wasn't that long ago our Australian dollar was worth $0.6X USD. Going back to $0.5X isn't that unrealistic. Can you imagine your stack doubling, while real estate prices are going down, or remain static.
 
I think this is quite plausible, the only annoying thing is the currency war. If currency war is not in effect, our dollar should be at 80-90c at the moment. But since Germany, USA and China actively control their currency, I think our dollar will hover at or above parity until the big boys find some other asset class as their currency sink.
 
^ That's exactly right. Currency wars hurt other countries. They are hardly free market yet governments like ours never object to the tactics used by the US, UK and Japan but continually bang on about free trade. Maybe it's got something to do with our balance of trade or maybe we have weak as piss politicians who would rather take their orders from imperialist aggressors rather than fight for what is best for their own country. :(
 
A Carbon tax + Mining Tax = BHP and Rio Tinto will move the majority if not all of there capital to Capitalistic 3rd world countries... why operate when you are working for a government that lets you keep a tiny % of YOUR earnings when you can take your expertise and capital overseas and keep a far bigger segment.. they have the captial and expertise to succeed globaly without the need for australia. Austrlaia will LOSE...

the stares right now who think they are the BEES KNEES, IE: WA - will have the carpet pulled from under them.. without tax from mines our over burdened socailised system will dsicentigrate, consumers WONT consume saving all to pay the sky high bills... property bubble will POP, Aussie dollar will nose dive into the ashfelt.

How to prepare for a government determined to grind industry to a halt and eliminate the middle class..

Prep preppers, prep!

LOL... retail stores cant increase costs?? WTF is this Starlins Russia? So a retail store with increased expenses has to absorb all the costs themselves.. so wed prefer to WIPE out retial stores then allow them to pass on costs of energy/transportation? THIS should send a clear signal we are under fascism when a big govt can set PRICE LEVELS??? 1984 much? RATIONS and FOOD queues?

Id go home to NZ if we didnt already have the carbon tax and a MORE socialised system (NZ is IN a depression that will get WAYYYYY worse)..

1for1
 
1for1 said:
A Carbon tax + Mining Tax = BHP and Rio Tinto will move the majority if not all of there capital to Capitalistic 3rd world countries... why operate when you are working for a government that lets you keep a tiny % of YOUR earnings
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Tell you what, how about I come over to your place, sell all your furniture on Gumtree and then give you 30% of whatever is left over after I finish deducting all the costs I incurred selling off your stuff.
 
Big A.D. said:
1for1 said:
A Carbon tax + Mining Tax = BHP and Rio Tinto will move the majority if not all of there capital to Capitalistic 3rd world countries... why operate when you are working for a government that lets you keep a tiny % of YOUR earnings
Click to expand...

Tell you what, how about I come over to your place, sell all your furniture on Gumtree and then give you 30% of whatever is left over after I finish deducting all the costs I incurred selling off your stuff.
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How about you excavate the dinosaur remains in my backyard and ill let you keep 10% of the final sale for your troubles, of course all the labour and capital costs are yours to bear, or maybe its no longer worth the effort and youll go to africa with your skills and staff and get a bigger chunk of the pie with less legislation and paperwork making finding dinosaur bones worthwhile.

1for1
 
Because its in the earth technically all of Australia owns it... i personally don't think the government can manage assets but i think the best thing for everyone is just to nationalise the mines..

When the government only lets private Companies keep a tiny fraction of there own money it will never work.. either nationalise it (for those who think its OUR MONEY, not private money), or be happy Australia gets fat tax for doing nothing but keeping HEAPS of aussies working and paying there own tax.

I don't see companies operating with this sort of UNKNOWN legislation.. how do you plan into the future.. i predict they will close multiple mines domestically by years end.. TAXATION DOWN.. JOB LOSSES. Either that or get the best accountant money can buy and MAKE A LOSS, plowing back all profits into EXPANSION EXTERNALLY of AUSTRALIA>.. they can do this for a couple of years until full relocation has been established outside of Australia.

Businesses are very very smart so will always work around government legislation, especially with a two year telegraph heads up like this mining tax.

1for1
 
Some good posts.
Thanks.
Next BIG place for mining is MONGOLIA.
Get in early folks...........
Sell the ute & get a yurt.
 
$10B (in new debt) for a Clean Energy Finance Corporation on top of the billions wasted on Carbon Sequestration, Taxing the gas that we all exhale and establishing the premise for taxing life itself, etc., etc. etc. ... sigh.

Here's how the greens are prioritising things.

Dear friend,
What an historic day it has been today in the Australian Senate.

The last parliamentary sitting week before the midwinter break has seen your Greens team continue to achieve great outcomes for all Australians who want a cleaner, healthier, smarter and fairer society.

A short time ago I walked into the Senate to vote into law Australia's biggest ever public investment in clean and renewable energy and one of the great achievements of the Greens in this parliament in building a clean energy economy.

It's a profoundly exciting moment for all of us here after years of campaigning and months of negotiations, the historic $10 billion commitment to the Clean Energy Finance Corporation is a huge change for the better for Australia.

We're only days away from July 1 when, for the first time, Australia will start moving to tax what polluters burn, and not what you earn. You can learn more about the Clean Energy Finance Corporation here, and you can share with your friends and families our daily updates on how July 1 brings change for the better.

Earlier today Greens Communications Spokesperson Senator Scott Ludlam gave notice that he will introduce a Bill into Parliament this week to protect the democratic interests of all Australians by protecting media diversity. The bill would implement a public interest test for changes in control of major media companies, based on that recommended by the Convergence Review and the ACCC.

The consolidation of immense media power in the hands of two individuals is a clear threat to free speech and to democracy. If we want Australia to be a country which values diverse views, which has a positive vision for itself as a healthier, cleaner, smarter society, we simply must not let that happen.

This public interest test for changes in media control is a sensible place to start. Find out more here.

This evening also saw a Senate inquiry back Senator Sarah Hanson-Young's Marriage Equality bill. MPs from across the parliament voted with the majority of the committee to end marriage discrimination against same sex couples.

The inquiry into the bill also found that religious groups would remain free to decide which couples they would marry under an amended Marriage Act, and that changing the law is constitutionally sound.

The evidence before the committee was overwhelming - marriage equality's time has come. What needs to happen now is for the Opposition Leader to change his mind on rejecting a conscience vote.

You can read more here, and watch Sarah's video about Marriage Equality here.

Please follow along with us on Twitter and Facebook as the rest of this week unfolds.

Yours sincerely,
Christine Milne
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To rub our noses in just how unsustainable things are, we even have an unmarried, Childless Prime Minister, a lesbian finance minister, a homosexual (ex) Speaker of the House and are arguing the merits of gay marriage, while the private economy is in absolute tatters, family values are disintegrating and we will shortly be faced with government perverts ogling our children and whoever else takes their fancy with naked body scanners at the airports!

If you don't think we are circling the toilet bowl of global epochs, then you're living in a different world to me. There is litterally no way this can continue for ever. But it will continue to go on for longer than we expect.
 
Fall 50 cents on the dollar... what doller? Zimbabwe??... The way the US is looking it wouldn't make a difference.

All the worlds major fiat currencies are doomed, comparing any two is futile.
 
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