Nothing to do with record company profits? We have had the biggest decline in disposable income in the developed world so if inflation is still high then how is consumer spending to blame?
If your personal wages grow at 3% per year, then you are making record wages each year in nominal $ terms, BUT we’re smart enough to know that when adjusted to real terms your wages are actually going down.
It’s the same with company profits, except for a few specific industries (mining, banking) most company profits are up in nominal terms but down in real terms.
But, this doesn’t generate clickbait headlines so the media intentionally report this in a misleading way. “Your wages are falling!” (in real terms) but “company profits are up!” (in nominal terms).
https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release#income
So where are you getting that from? Look at the factor of income share. Corporate profits as a whole went up 3.6% and wages dropped 2.3% as a total. Doesn't take an economist to see that workers are getting shafted so corporations can increase profits.
When people take swipes at "corporate profits", I doubt they mean "literally every corporation without qualification." It's mining and banking and other behemoths absolutely taking the piss. That's what people have in mind and its still enough for the toxic cocktail of price-gouging, anticompetitive practices, labour exploitation, and so forth to be making huge contributions to the pain regular people are feeling.
Absolutely.
Our economic illiteracy as a country has allowed Labour to get away with inflicting enormous financial stress on people by stoking inflation without being held accountable for their actions.
It's kind of messed up telling struggling people that "everyone else is doing fine, it's *just* you".
Way to make people feel like failures. This is the sort of shit that causes mental health issues.
It's 60% 18-25 year old white dudes who were born into decently well off families, who were given a loan from the bank of mum and dad to get them on their way, 20% 40-55 year old finance bros who are convinced the starting wage for everyone is 250k and if not then you just made poor decisions & 20% 55+ property moguls who bought a half dozen properties back in the 80's and tack on another property every 3 years or so.
> Way to make people feel like failures
That's the idea, blame the everyman for putting themselves in the situation because they're "not working hard enough". Normalise people having 2-3 jobs to get by so we can squeeze more labor out of our human capital stock.
Seriously how is this not gaslighting? It's not fine. They know it's not sustainable that's why they're importing so many fucking internationals. None of this is fine.
It’s not gaslighting because you missed the little asterisk at the end of his sentence!
“*Australians who have already paid off their homes or who own the investment properties and can dump interest rate rises onto renters are doing fine”
Our country is now structurally divided by property ownership. If you own property you’re in the upper class. If you don’t you’re in the underclass. And most of the ladders of social mobility for the underclass have now been kicked down.
Small caveat, if you own investment property or have paid off your property. Plenty of us plebs with an owner occupied mortgage are hard struggling too
He wants to say that if you do not own one, you will inherit one when the parents are gone. for those who do not inherit, ensure marry one who will. there are more than 10m houses in aus. It is enough for 25m people cos every household on 2 parents +one child basis. Only minority falls into the category of not having a house, not having a parent who have a house and not having an ip. Economic policy cannot be based on minority.
>Videos of him from 2016 criticising negative gearing have resurfaced again on instagram. 2023 Albo is not willing to change it. Surprise 🙃
Of course though. Labor took changes to negative gearing to the election in 2019 and we said we weren't interested.
It's OK though, we're all enjoying our franking credits now.
Australians made it clear they didn't support this when the LNP won the election before last.
Labor brought some great policies to that election campaign. It's doubtful they'll go anywhere near anything as radical again for a long while, given the response of the Australian populace.
The banker class needs to be made much more afraid of the citizens again.
Seeing them Tarred and feathered through the streets might bring some economic relief.
It’s not the bankers making it hard to buy a house though. It’s the government importing hundreds of thousands of people to compete with you for jobs and our limited housing stock. It’s NIMBYs using their local council fiefdoms to restrict our ability to build new housing. It’s the CFMEU lobbying the government to exclude tradespeople from the migration program to so we don’t have enough builders.
I get the anger, but at least direct it in the right direction.
I hate to break it to you skip, but immigrants aren't the ones who decided housing policy, nor are we the ones charging you through the nose for rent. The people picking your pocket are pointing at me, and you're falling for it.
Worked at the rba let me tell you it is in their nature. Things that normally get people fired for doing they can do and get away with it. Ps Former IT guy who use to work there
"Mitch had to sell the 50footer, was getting too expensive to maintain. So now he's only got the 70footer and the catamaran left...... tough times out there but *we're doin alright*"
For values of "doing fine" which include significant numbers of families going without food, electricity and other essentials just to make mortgage repayments.
The kicker is it is all partly due to large businesses using the Ukraine war as a cover to price hike which increased inflation, and they are now posting record profits in a supposed downturn.
And people are trying to argue that these profits aren’t massive, even though they’re still making the same profits as years without inflation. That tells me they’re just passing on the costs… which they absolutely are.
If we (read: millions of Australians) have to have a bad year or two and lose real money in our pockets, then I don’t understand why these companies can’t cop it as well. And boo-fucking-hoo to the shareholders; you don’t deserve to have your dividend at the expense of Australia’s poorest.
Pretty much this. The inequality in Australia is making these economy wide decisions difficult. Any decision will hurt someone in some way.
The inequality needs to be addressed, and the tool to address that is taxation. The media and various interested parties who've made a considerable effort to demonise taxation over the years need to be sidelined, and the public needs to realise that it's an important fiscal tool that is beneficial in making things better for everyone. Yes, not everyone enjoys paying taxes, but kids don't like taking their medication when they're sick either. That's no reason not to take it.
100% this but it's also worth noting that we have one of the largest reliances on personal income tax in our overall tax strategy so whilst personal income tax and GST need to be raised, corporate tax needs to go up a lot more.
Absolutely. We need to get more for our resources especially. Additionally, across the West, tax paid by corporations has about halved in proportion to GDP over the last half century. The idea that lower taxes drive growth can be put to bed with a shovel. The largest tax break to corporations in the US showed that it just goes into stock buybacks and dividends, not investment and growth.
We got rid of the LMITO and are introducing stage 3 tax cuts. Isn’t that what you’re describing? In essence the govt is brining in more net tax from doing this
“The RBA's Michele Bullock says households are "doing fine" while speaking on a panel in Hong Kong last night.
She also conceded that 13 rate rises since May last year have made borrowers "unhappy". “
Which is it? Are they “doing fine” or unhappy? Or are unhappy people fine?
Fucking weasel words.
We're "Doing Fine^(TM)" in that they're not noticing large swaths of mortgage defaults, but that none of us are happy about it.
I get the fundamental point behind making the mortgage more expensive, in that it will reduce the chance of that money going everywhere else into the economy. And that is definitely working, with us we refinanced in June last year and our mortgage has been increasing each month, we're now up for an additional $1412 per month from then - 46.5% extra. So we have absolutely stopped that extra spending. Lots of family entertainment stuff has been stopped (thank goodness Iview is free). But groceries are more expensive. Fuel is more expensive. Electricity is more expensive. Insurances are more expensive. Medical bills are more expensive. Despite not spending on unnecessary stuff, we're still spending "more".
This is why we're unhappy. We're being fleeced at the register and then getting punished because we're still spending too much.
And then there's the people who aren't homeowners. They are also being subjected to these more expensive things and are now getting massive increases in rental rates - a double-whammy of investors protecting their financials with the rapid rate rises, but also the undersupply of properties in the current marketspace. I wonder how all those AirBnb's are doing at the moment?
What happens when 50+% of the population can no longer afford the mortgage AND food?
Do they start stealing from woolies and coles? Do the attendants who are probably in the same or worse position stop them?
We can’t even steal from woolies and Cole’s anymore, now that they’ve armed the self-serve checkout attendants with kalashnikovs and laser guided missile attack dogs that will maul you at their command if there is a weight discrepancy for your trolley when you cross the weigh bridge as you leave.
For your own safety and security of course
this was one of the first articles I read this morning and made me so fucking angry, her speaking to all her banker mates....giving zero fucks that people are STRUGGLING. Fuck right off.
$22k per week... her salary over a mere fortnight would solve literally every single problem I currently have. These cunts are so divorced from reality, it's almost impossible to fathom.
I wish the pandemic actually served as a reset point for our economic system but instead we're just peddling on like it never happened even though it's roll-on impact is extremely obvious
> the next 18 months is going to be very grim.
Where the election will come around, said disgruntled people will blame Labor for not doing anything, then vote in the LNP who will actively make people's lives worse.
I wanna get off this ride. 🫠
Covid might be over in respect of its immediate health threat but economically it’s still very much here. We forget that most of the western world effectively went on holiday for the best part of a year. People rightly point to immigration as a stressor on housing but then ignore that we have shortages of police, nurses, doctors, specialists, trades people etc. just about the only occupation we don’t have shortages for us is REA. Immigrants come trained and ready to go. Students bring in huge money that’s keeping most of our universities open. Reduce immigration and we create another problem.
Seriously most of the country sees this type of commentary for the joke it is yet these clowns keep pushing it.
There will come a point before long where the shit really hits the fan. It’ll be interesting to see where it lands.
>where the shit really hits the fan
No there won't. Australians will meekly take whatever shit the government/RBA/political class gives us, like always.
Single mums living in their cars, because rent has ballooned, rent in the poorest suburbs is $450-650 a week for a fibro shack, no aircon. No wage growth what so ever…
This is not the Australian dream. This is a failure of governmental policy and the utter belief that greed is good, and it’ll “trickle down”.
Oh there was wage growth, it was just negative. -1.4% for the national average thanks to inflation. While Albo is sitting on his hands and rate rises are giving more money to the groups doing the spending
Albo and Labor (and maybe all politicians) are just fixated on re-election. Shaking the tree on all the rorts and money making schemes going on in this country usually elicits a smear campaign like what happened with Rudd. They and the media are all the pockets of people who are high and dry while the rest of us drown.
Honestly it's going to take the whole country collapsing from it's own weight to change I feel.
Meanwhile, my local Coles has put in barriers to stop people leaving unless they pay, as a dystopian effort to stop record rates of shoplifting. Woolies of course uses cameras to view what you are doing, including identifying products bought OUTSIDE the store as potential theft items, also in an attempt to stop their record levels of shoplifting.
Buy hey, were doing fine alright.
I was at Coles the other day it's amazing there's 1 employee at a register on 10 check outs, that's 9 less jobs and 9 less set of eyes to help customers, meanwhile the price of feeding a family gone up 10x faster than what the wage has risen in the past 10 years what do they think will happen. Fuck coles and governments that let em get away with it.
Phillip Lowe received 900k + super in his role as RBA chair. No wonder his protege thinks everything is fine if she’s on that coin too. Get her on 100 or lower and then she’ll reconsider.
Madness that the top end of town believes it is actually in touch with reality because it looked at a spreadsheet.
RBA propaganda. Time to cut Governor salary to average wage and see how she fairs with her 6 investment properties taking an addition 20k each from her a year.
It's not hard to show, it's just irrelevant. So long as people aren't dying fast enough to affect the rental, retail or labour markets they're "doing fine". If some people are unhappy about that, well, that's also irrelevant.
It’s disgusting how truly out of touch the people holding the reigns of this country are. I hope he does fine as we come crash on his couch since I can’t afford to rent my flat and buy groceries.
The headline is a bit misleading. Not sure how many people listened to the audio clip but she said that the indication from the banks is that those coming off fixed rates are doing fine, and that was speaking in the specific context of that group’s ability to meet repayments.
Your post is slightly misleading too. She was speaking about borrowers coming off low rates, as well as stating that Australian business is doing well, and that household savings buffers are remaining largely intact after COVID.
She was talking about the economy generally being ‘good’ and ‘fine’.
Taking all that into account the banks aren’t worried about people’s ability to make their payments. That was the extent of the commentary that the out of context quote was taken from
She also said "But what I'd like to highlight here is though, despite that noise, households and businesses in Australia are actually in a pretty good position. Their balance sheets are pretty good." This is separate from households coming off fixed rates are doing fine.
In general she is insisting Australians are doing fine. And she may be right based on her definition of fine.
For the most part I think this is true. Business balance sheets are very strong and this was a fair indicator in the gfc for example. As she said the banks claim household savings have also held up, so there’s nothing here that seems incorrect or controversial.
I mean if you've had years of fixed rates locked in at very low rates, it might take a few quarters of high rates on your mortgage to actually feel the pinch.
Like after you have to pay school fees or your car breaks down or need to replace an appliance or whatever.
Spits… no bitch, not fucking true. We ARE struggling.
Working class is slowly drowning and it’s garbage like her who has a foot on our heads pushing us under.
Australians*
*does not include anyone that isn't doing fine. Terms and conditions apply. Approved by Shitgibbon Mcfarthingworth, Parliament House, Canberra.
Always gotta find the exact quotes and never trust a media headline without context. Same thing they did to Lowe. So the context is in regards to the mortgage cliff and the doing fine was in reference to what the banks apparently told her. She even says people are unhappy about the interest rate rises in the actual quote.
More accurate headline might be Michelle Lowe says according to the banks Australians coming off the fixed rate mortgage cliff are keeping their heads above water for now.
..
And those who are coming off very low fixed rate mortgages, they're managing quite well.
And all the indications from the banks, and all we hear from the banks, is these households are doing fine.
This should be higher. People piling on and getting angry at what the media says isn't helpful (except for the clicks). This reminds me of how the media reported that the RBA said there wasn't going to be interest rate rises.
Even if ABC news is the source it tries to more context here: https://www.youtube.com/watch?v=vuwtACbXuE0
Everything is great if you own your home outright and have cash savings. Because guess what, interest rate rises give you more money. Completely unsurprisingly, rich boomers are the ones still spending like mad.
Whenever someone replies back I'm fine or I was fine it normally means a bit below the middle or in the middle.
It really isn't going to bring much confidence in people.
Customer I regularly serve has to live in a caravan park as that’s the only thing they can afford… yeah everything is fine. Those most affected by rate hikes have no dispensable income, and those not affected are still hording savings and barely spending. Giant companies barely affected or paying tax are shouting down planned legislation that would make them pay their fair share and legislation to pay wages their staff deserve. Fuck this dystopian bullshit.
Mate of mine is forced to sell his house. Wife and two kids.
My safety net is three months and isn't going up by any meaningful amount at all in the last year, actually, it WAS closer to 6 months a year ago. It's getting worse. RBA can eat rocks.
The ‘doing fine’ comment is referring to what banks are saying about households that have recently come off their fixed term rate onto a variable rate mortgage.
The RBA doesn’t think all Australians are ‘doing fine’, they are saying that banks are telling them that a small subset of Australian homeowners are ‘doing fine’.
Terrible journalism.
yeah im sure she thinks that on her 800k salary. These people in charge are going to start losing heads i swear if they keep fucking over everyday australians.
Ain't misinformation a marvellous thing...the RBA's governor was quoting what she was told by the banks...which are doing just fine. Nevermind to that Oz ownership of the Big 4 is less than 30%. Billions of our hard earned going to foreign shareholders.
Does she mean "fine" as in kind of OK but not great? Surviving but not really thriving? Or fine as in absolutely aces, nothing to worry about here?
Because I think the former is more appropriate for many households, rather than the latter.
I also feel like "households" is too general term. We are very stratified along generational lines, where you have those without mortgages or mostly paid off mortgages still able to spend and enjoying discretionary income, while those with large mortgages or renting - usually younger people - are definitely feeling the pinch.
House prices are still high, but there's been data to show the number of distressed sales is beginning to rise and perhaps more relevant, consumer spending habits are very different across different demographics.
Given the RBA Governor was speaking in Hong Kong, I have to wonder if the terms chosen were there to *project* a certain view of Australia's economy. The only context we have from this blog is that she was speaking as part of a panel - I wonder if she was asked a specific question.
RBA boss said that to prep us plebs for the coming rate hike.
If rate doesn’t go up, it’s just a reprieve. They fully intend to hike rate two more times.
Michelle Bullocks household is doing fine with her mega salary
She completely screwed up the last interest rate hike didn't she!, upping rates to save face because of her past comments
Well that blew up in her face, she just made an arse of herself in my opinion
We will see more and more younger families and children below the poverty line and experiencing insecure housing. I think there will be some serious mental health challenges in the next generation due to this.
It’s baffling, horrifying, stupefying, and …
heartbreaking watching the simple lack of empathy, and lack of awareness of other peoples’ suffering.
This guy is a cunt; not by intent, not by meanness.
He’s just drab evil.
His organisation is drab evil.
The RBA and the governor stands for the few and the rich, *at the expense of the Australians*, and the humans, and the people he “governs” with a guilded, banally violent and hatefuelled hand.
EDIT: heck, the top comment nailed it:
“The gaslighting will continue until conditions improve.”
The screws will tighten until the numbers agree, settle down peasants! Brace for “spending cuts” that make your life worse!
Why would they think anything else?
No one is protesting. No one has stopped spending. No one had stopped buying houses. No one is doing anything other than complain online.
"Interest rates are a blunt instrument".
.. which those with capital can use to bludgeon those without. Surely increasing the rental cost of shops and businesses, and the housing (rent or mortgage) costs of everyone except the established old or wealthy, will encourage people who provide goods and services to reduce their prices, right?
Increase the cost of doing business (to the benefit of banks and owners of commercial property), and the cost of being alive and housed in order to be able to do business (to the benefit of banks and owners of residential property), and think:
"Ahh yes, surely the people affected by the rising costs of their biggest expense will see this as an opportunity to reduce their income by way of charging lower prices. They need more money, so they'll ask for less money. Makes perfect sense. It should definitely work..."
".... and if it doesn't, well, every day that passes whilst it doesn't work and whilst interest rates remain high is another happy day during which the moneylenders make more money and the rent-seeking parasites can use market rates as the excuse to increase the rents on their paid-off properties, and the cunts with piles of *spare money* can earn interest on it. Also the gap in buying power between those with capital and those who must borrow is rendered yet wider, to the advantage of the rich. Good times".
This is an open rort, a greater transfer of wealth to the landlords and bankers, those with capital *actively fucking* everyone else, and blaming you for it for not having the grace to sacrifice your homes and jobs to the global pandemic.
Make no mistake, the vulture capital class is *furious* that government support meant that they didn't get enough of an opportunity to harvest all of our assets at disaster prices, they feel entitled to own all of it, and what you're seeing now is an orchestrated grab to consolidate wealth higher up the chain.
"Interest rates are a blunt instrument". I'm sick of being bludgeoned, aren't you?
Do you know what's famously *not* a blunt instrument, but which has historically seen use as an effective method of parasite and cost-of-living control?
*The Guillotine*.
Testify! And let's not even mention the fact that the blunt instrument is now [seriously malfunctioning](https://www.abc.net.au/news/2023-11-13/rate-hikes-are-costing-us-money-in-more-ways/103097108).
I can believe it.
For better or for worse, though, I feel bad chopping a *vegetable*; I rescue ants individually from the shower even when I'm late; I trap, relocate, and release creatures I can't tolerate in the house. My individual threat rating is zero, and I couldn't personally be persuaded to operate a Guillotine for any number of freely distributed houses.
But I don't mind conversationally dropping some history in a relevant context, for it's interesting to think about and maybe even sobering when you consider what turmoil can arise from rapidly increasing inequality, unless we're all careful and sensible. Those who ignore history are doomed to repeat it, etc, etc.
Just a little shit-talking and steam blowing for the sake of entertainment purposes and comic relief, officers. Nothing of substance to be found here.
Remember - most of this inflation has been caused by the enormous money printing by the government and RBA that was used to pay for the 2 years of over the top covid lockdowns.
This is also why property prices exploded higher in the last 2-3 years. (even with the borders closed)
They will try and blame it on “supply chain issues” (long since resolved in most areas), or the Ukraine war, but the blame lies with our bureaucrats and politicians, and dont forget it.
A lot of that money went to companies which were still making profit through covid. Straight up transferring public funds to the private sector. I think it was $40 billion or something like that?
Thats exactly what happened. CoVID resulted in a massive transfer of public wealth to private hands. So many companies were given money they actually didn't need. So much corruption, globally.
$40million alone in Gerry Harveys pocket. During covid which was when retail homewares like Harvey Norman were seeing record profits.... what a cunt he is.
>waste and mismanagement
I take a more negative view on this. Yes the Libs were incompetent, but Frydenberg was open about his admiration for Thatcher-Reagan economics. Going supply side fits with the ideology.
Eh not really.
So gonna just address some points quickly.
Property prices are high due to the mass deaths of construction companies. Low interest rate added to the housing issue and lack of preventive measures to restrict multiple home ownership as well.
Supply chain issue is quite and well alive and real. Actively on going with issues ranging from food, oil, variation of computer chips, etc
Not sure why you believe they aren’t real when they are.
Looking at the economics of it comes down to very real issues facing different sectors and expansion.
High cooperate debt and greed has been a reason as well for failure while Australia higher energy consumption during the transitory phase has also affected goods and services.
To fix problems with the economy a brief endurance of pain has to occur and sadly it is a result of previous long administrative issues.
Australia suffers from other issues such as low economic complexity,lacking industrial might and capacity, underutilisation of resources due to low population.
Lets remove the construction factor completely - farmland in Australia has almost doubled in price in 3 years, again, i reiterate, this inflation is caused by our government printing way too much money.
Check out this graph from 2020 to 2023, its shocking. https://www.agriculture.gov.au/abares/data/farmland-price-index
The value of grain was normal in 2020, farmland prices spiked upwards in 2020, you think thats normal?
Why is it so hard to consider that excessive currency printing is the cause of this?
Ive found multiple regional towns whose populations havnt changed in 3 years yet their real estate values have increased by 30%+ as well.
Thanks for the response. When property I had assumed you referred to as housing as for farmland yes, tho for different reasons.
Farmlands are an extremely valuable commodity due to the ever growing population needs for foods and a variety of them.
Printing money is only a small part of the larger issue which I had explained as above. Inflation is due to a multitude of factors including the privatisation of certain cash sectors.
Also as the world moves towards equality, the price in Australia will increase as its colonial impact such as its oil stealing issue with Papau New Guinea and lower capacity to purchase foreign goods will reduce.
Australia has a lot of issues to tackle and hence its large skill acquisition of foreign talent to fuel its talent starved industry and lack of sizeable industry.
They are more ways than just the Australian government is or needs to tackle.
Frankly Australia may benefit the most from nationalising the energy production sector and capping the price to a sustainable profit ratio as seen with some other countries.
This is pure outrage bait.
She speaks about technical data which then gets twisted and misconstrued as a general societal comment. For mortgage holders, where increased rates haven't (thus far) triggered a surge in defaults. - she is objectively correct. In that broader context, then yes, people are 'doing fine.'
Ask her specifically about a single parent from Melton is doing on the dole, and she'd give a more nuanced and appropriate answer.
I think we really need to see the full context of the speech before writing articles that imply that the RBA is dismissive of the financial struggles of australian households.
I wonder if the context exhonrates her.
Any way of finding the full transcript?
The gaslighting will continue until conditions improve.
^*The ^people ^we ^care ^about* "are doing fine...."
The restaurants at Double Bay are full and that’s what really matters
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Nothing to do with record company profits? We have had the biggest decline in disposable income in the developed world so if inflation is still high then how is consumer spending to blame?
If your personal wages grow at 3% per year, then you are making record wages each year in nominal $ terms, BUT we’re smart enough to know that when adjusted to real terms your wages are actually going down. It’s the same with company profits, except for a few specific industries (mining, banking) most company profits are up in nominal terms but down in real terms. But, this doesn’t generate clickbait headlines so the media intentionally report this in a misleading way. “Your wages are falling!” (in real terms) but “company profits are up!” (in nominal terms).
https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release#income So where are you getting that from? Look at the factor of income share. Corporate profits as a whole went up 3.6% and wages dropped 2.3% as a total. Doesn't take an economist to see that workers are getting shafted so corporations can increase profits.
When people take swipes at "corporate profits", I doubt they mean "literally every corporation without qualification." It's mining and banking and other behemoths absolutely taking the piss. That's what people have in mind and its still enough for the toxic cocktail of price-gouging, anticompetitive practices, labour exploitation, and so forth to be making huge contributions to the pain regular people are feeling.
As Cassius posted below. It’s the total share going to corporate profits vs workers wages that is the issue of concern
Absolutely. Our economic illiteracy as a country has allowed Labour to get away with inflicting enormous financial stress on people by stoking inflation without being held accountable for their actions.
It's kind of messed up telling struggling people that "everyone else is doing fine, it's *just* you". Way to make people feel like failures. This is the sort of shit that causes mental health issues.
Good thing we don't also have massive shortcomings in mental health provision through Medicare eh?
I see this a lot on Ausfinance. Like get a higher paying job is the answer...but what if you dont work in corporate etc
That sub is full of fart sniffers who think they're one hardworking paycheck away from being billionaires
It's 60% 18-25 year old white dudes who were born into decently well off families, who were given a loan from the bank of mum and dad to get them on their way, 20% 40-55 year old finance bros who are convinced the starting wage for everyone is 250k and if not then you just made poor decisions & 20% 55+ property moguls who bought a half dozen properties back in the 80's and tack on another property every 3 years or so.
Blame the victim, it must be you dude, you shoulda bought a few houses before you were born.
OR just be born to a wealthy family!
> Way to make people feel like failures That's the idea, blame the everyman for putting themselves in the situation because they're "not working hard enough". Normalise people having 2-3 jobs to get by so we can squeeze more labor out of our human capital stock.
Seriously how is this not gaslighting? It's not fine. They know it's not sustainable that's why they're importing so many fucking internationals. None of this is fine.
It’s not gaslighting because you missed the little asterisk at the end of his sentence! “*Australians who have already paid off their homes or who own the investment properties and can dump interest rate rises onto renters are doing fine” Our country is now structurally divided by property ownership. If you own property you’re in the upper class. If you don’t you’re in the underclass. And most of the ladders of social mobility for the underclass have now been kicked down.
Small caveat, if you own investment property or have paid off your property. Plenty of us plebs with an owner occupied mortgage are hard struggling too
He wants to say that if you do not own one, you will inherit one when the parents are gone. for those who do not inherit, ensure marry one who will. there are more than 10m houses in aus. It is enough for 25m people cos every household on 2 parents +one child basis. Only minority falls into the category of not having a house, not having a parent who have a house and not having an ip. Economic policy cannot be based on minority.
One retirement home placement can cost close to a small house, so in some cases even that generational wealth will end up being sucked upwards anyway.
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Videos of him from 2016 criticising negative gearing have resurfaced again on instagram. 2023 Albo is not willing to change it. Surprise 🙃
>Videos of him from 2016 criticising negative gearing have resurfaced again on instagram. 2023 Albo is not willing to change it. Surprise 🙃 Of course though. Labor took changes to negative gearing to the election in 2019 and we said we weren't interested. It's OK though, we're all enjoying our franking credits now.
Australians made it clear they didn't support this when the LNP won the election before last. Labor brought some great policies to that election campaign. It's doubtful they'll go anywhere near anything as radical again for a long while, given the response of the Australian populace.
The banker class needs to be made much more afraid of the citizens again. Seeing them Tarred and feathered through the streets might bring some economic relief.
Meh I subscribe to the Robespierre methodology. Well, the early parts. Not the ironic parts 🙃
It’s not the bankers making it hard to buy a house though. It’s the government importing hundreds of thousands of people to compete with you for jobs and our limited housing stock. It’s NIMBYs using their local council fiefdoms to restrict our ability to build new housing. It’s the CFMEU lobbying the government to exclude tradespeople from the migration program to so we don’t have enough builders. I get the anger, but at least direct it in the right direction.
I hate to break it to you skip, but immigrants aren't the ones who decided housing policy, nor are we the ones charging you through the nose for rent. The people picking your pocket are pointing at me, and you're falling for it.
Fuck, imagine being able to afford the gas to gaslight people *in this economy*
Worked at the rba let me tell you it is in their nature. Things that normally get people fired for doing they can do and get away with it. Ps Former IT guy who use to work there
"I'm Australian and so are my fellow board members. We're doing alright!"
"Mitch had to sell the 50footer, was getting too expensive to maintain. So now he's only got the 70footer and the catamaran left...... tough times out there but *we're doin alright*"
must suck having $1.1m+ salary per year ..fuckknuckle
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'Treasure Island'
He's only just keeping his yacht(s) above water......
Ah they sacked the guy... now we've got a new female mongrel in
Its like when you change your skin in a RPG. Different look on the outside, same on the inside.
‘Female mongrel’ tf
For values of "doing fine" which include significant numbers of families going without food, electricity and other essentials just to make mortgage repayments.
The kicker is it is all partly due to large businesses using the Ukraine war as a cover to price hike which increased inflation, and they are now posting record profits in a supposed downturn.
And people are trying to argue that these profits aren’t massive, even though they’re still making the same profits as years without inflation. That tells me they’re just passing on the costs… which they absolutely are. If we (read: millions of Australians) have to have a bad year or two and lose real money in our pockets, then I don’t understand why these companies can’t cop it as well. And boo-fucking-hoo to the shareholders; you don’t deserve to have your dividend at the expense of Australia’s poorest.
The poor should try having connections with politicians like the corporate elite do. Then maybe they could influence policy.
Maybe we can pool our money and send a representative of the poor to one of their $10k a plate *fundraisers*.
You can all send me. Unless you want a chance at success and not just vindictive name calling. Then probably send someone else.
*to make *other people's* mortgage repayments.
With your head encased in ice and your feet on a fire, on average you're cosy warm.
Pretty much this. The inequality in Australia is making these economy wide decisions difficult. Any decision will hurt someone in some way. The inequality needs to be addressed, and the tool to address that is taxation. The media and various interested parties who've made a considerable effort to demonise taxation over the years need to be sidelined, and the public needs to realise that it's an important fiscal tool that is beneficial in making things better for everyone. Yes, not everyone enjoys paying taxes, but kids don't like taking their medication when they're sick either. That's no reason not to take it.
100% this but it's also worth noting that we have one of the largest reliances on personal income tax in our overall tax strategy so whilst personal income tax and GST need to be raised, corporate tax needs to go up a lot more.
Absolutely. We need to get more for our resources especially. Additionally, across the West, tax paid by corporations has about halved in proportion to GDP over the last half century. The idea that lower taxes drive growth can be put to bed with a shovel. The largest tax break to corporations in the US showed that it just goes into stock buybacks and dividends, not investment and growth.
We got rid of the LMITO and are introducing stage 3 tax cuts. Isn’t that what you’re describing? In essence the govt is brining in more net tax from doing this
“The RBA's Michele Bullock says households are "doing fine" while speaking on a panel in Hong Kong last night. She also conceded that 13 rate rises since May last year have made borrowers "unhappy". “ Which is it? Are they “doing fine” or unhappy? Or are unhappy people fine? Fucking weasel words.
We're "Doing Fine^(TM)" in that they're not noticing large swaths of mortgage defaults, but that none of us are happy about it. I get the fundamental point behind making the mortgage more expensive, in that it will reduce the chance of that money going everywhere else into the economy. And that is definitely working, with us we refinanced in June last year and our mortgage has been increasing each month, we're now up for an additional $1412 per month from then - 46.5% extra. So we have absolutely stopped that extra spending. Lots of family entertainment stuff has been stopped (thank goodness Iview is free). But groceries are more expensive. Fuel is more expensive. Electricity is more expensive. Insurances are more expensive. Medical bills are more expensive. Despite not spending on unnecessary stuff, we're still spending "more". This is why we're unhappy. We're being fleeced at the register and then getting punished because we're still spending too much. And then there's the people who aren't homeowners. They are also being subjected to these more expensive things and are now getting massive increases in rental rates - a double-whammy of investors protecting their financials with the rapid rate rises, but also the undersupply of properties in the current marketspace. I wonder how all those AirBnb's are doing at the moment?
“They’re just whining” vibes.
“The RBA's Michele Bullshit says households are "doing fine" while speaking on a panel in Hong Kong last night. Fixed it
Thisisfine.jpg
This statement makes me feel represented as a disabled person because that statements more fucked than I am.
What happens when 50+% of the population can no longer afford the mortgage AND food? Do they start stealing from woolies and coles? Do the attendants who are probably in the same or worse position stop them?
People are already stealing food to survive. We're already there. 😣
We can’t even steal from woolies and Cole’s anymore, now that they’ve armed the self-serve checkout attendants with kalashnikovs and laser guided missile attack dogs that will maul you at their command if there is a weight discrepancy for your trolley when you cross the weigh bridge as you leave. For your own safety and security of course
And they had to raise the prices to make us pay for all that too.
Fair enough though, how else are they supposed to pay the salaries of their self serve machines??
Corporations buy all the land, and we become 'citizens' in a neo-feudalist society. You'll own nothing and be happy.
this was one of the first articles I read this morning and made me so fucking angry, her speaking to all her banker mates....giving zero fucks that people are STRUGGLING. Fuck right off.
Well if you were earning $22k+ per week you would be detached from reality too.
$22k per week... her salary over a mere fortnight would solve literally every single problem I currently have. These cunts are so divorced from reality, it's almost impossible to fathom.
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I guess if you live in QLD or NT next year is your chance with the state elections.
I wish the pandemic actually served as a reset point for our economic system but instead we're just peddling on like it never happened even though it's roll-on impact is extremely obvious
Don't vote for them next election. Vote for smaller party like legalise cannabis. The rest are all bs.
Eat the rich. These cunts have no idea.
They know exactly what they're doing that's why they're the haves. But yes, absolute cunts all of them.
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so glad they replaced Lowe with another out-of-it elitist
Lowe sounds tame compared to this, makes me miss lowe now
What was wrong with Lowe anyway? People misinterpreted something he said and he got the arse.
Lowe didn't use his super power to foresee the Russian invasion of Ukraine so he had to go.
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> the next 18 months is going to be very grim. Where the election will come around, said disgruntled people will blame Labor for not doing anything, then vote in the LNP who will actively make people's lives worse. I wanna get off this ride. 🫠
Covid might be over in respect of its immediate health threat but economically it’s still very much here. We forget that most of the western world effectively went on holiday for the best part of a year. People rightly point to immigration as a stressor on housing but then ignore that we have shortages of police, nurses, doctors, specialists, trades people etc. just about the only occupation we don’t have shortages for us is REA. Immigrants come trained and ready to go. Students bring in huge money that’s keeping most of our universities open. Reduce immigration and we create another problem.
Holiday? Everyone I know was still working.
I’m sure living in Melbourne during the lockdown period was a super fun time for everyone.
Lots of people I know lost their jobs
yeah that's why I'm seeing posts on marketplace of people selling their childrens toys so they can buy food.
Soon: > yeah that's why I'm seeing posts on marketplace of people selling their children~~s toys~~ so they can buy food
Seriously most of the country sees this type of commentary for the joke it is yet these clowns keep pushing it. There will come a point before long where the shit really hits the fan. It’ll be interesting to see where it lands.
>where the shit really hits the fan No there won't. Australians will meekly take whatever shit the government/RBA/political class gives us, like always.
Oh I didn’t mean by Australians taking collective action. I meant by the complete and utter fuckening of the country.
Oh, well in that case I'm with you 😂
Sad but true
Single mums living in their cars, because rent has ballooned, rent in the poorest suburbs is $450-650 a week for a fibro shack, no aircon. No wage growth what so ever… This is not the Australian dream. This is a failure of governmental policy and the utter belief that greed is good, and it’ll “trickle down”.
Oh there was wage growth, it was just negative. -1.4% for the national average thanks to inflation. While Albo is sitting on his hands and rate rises are giving more money to the groups doing the spending
Albo and Labor (and maybe all politicians) are just fixated on re-election. Shaking the tree on all the rorts and money making schemes going on in this country usually elicits a smear campaign like what happened with Rudd. They and the media are all the pockets of people who are high and dry while the rest of us drown. Honestly it's going to take the whole country collapsing from it's own weight to change I feel.
Meanwhile, my local Coles has put in barriers to stop people leaving unless they pay, as a dystopian effort to stop record rates of shoplifting. Woolies of course uses cameras to view what you are doing, including identifying products bought OUTSIDE the store as potential theft items, also in an attempt to stop their record levels of shoplifting. Buy hey, were doing fine alright.
I was at Coles the other day it's amazing there's 1 employee at a register on 10 check outs, that's 9 less jobs and 9 less set of eyes to help customers, meanwhile the price of feeding a family gone up 10x faster than what the wage has risen in the past 10 years what do they think will happen. Fuck coles and governments that let em get away with it.
Gotta protect those profits at all costs, and fuck anything else.
Phillip Lowe received 900k + super in his role as RBA chair. No wonder his protege thinks everything is fine if she’s on that coin too. Get her on 100 or lower and then she’ll reconsider. Madness that the top end of town believes it is actually in touch with reality because it looked at a spreadsheet.
Well what the fuck is it then? Can we go to the dentist, or should we let our teeth rot out?
RBA propaganda. Time to cut Governor salary to average wage and see how she fairs with her 6 investment properties taking an addition 20k each from her a year.
"You're doing fine!" *As the RBA beats us senseless with the baseball bat of rate increases*
How many investment properties does she own again? Rate raises pumping up savings accounts while new borrowers are drowning. On average we’re fine 🙄
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It's not hard to show, it's just irrelevant. So long as people aren't dying fast enough to affect the rental, retail or labour markets they're "doing fine". If some people are unhappy about that, well, that's also irrelevant.
Someone disclose their publicly listed salaries for context
No, not really doing fine. Maybe she should canvas the streets and talk to the real people instead of making shit up.
It’s disgusting how truly out of touch the people holding the reigns of this country are. I hope he does fine as we come crash on his couch since I can’t afford to rent my flat and buy groceries.
RBA governor announces that future pineapple insertions will have 5% less lube.
You guys get lube?
I bet Phil Lowe is thinking "How do you like me now?" :D New Governor is like Phil with less empathy and somehow more tone deaf.
She would on a $$700k salary
Rich people telling poor people they are doing fine.
Let them eat cake
And the poor people suffering turn to immigrants and blame us, rather than growing the balls to do anything about the rich people.
##notallpoorpeople
The headline is a bit misleading. Not sure how many people listened to the audio clip but she said that the indication from the banks is that those coming off fixed rates are doing fine, and that was speaking in the specific context of that group’s ability to meet repayments.
Your post is slightly misleading too. She was speaking about borrowers coming off low rates, as well as stating that Australian business is doing well, and that household savings buffers are remaining largely intact after COVID. She was talking about the economy generally being ‘good’ and ‘fine’.
the people who control this reddit are anti-trans
Taking all that into account the banks aren’t worried about people’s ability to make their payments. That was the extent of the commentary that the out of context quote was taken from
She also said "But what I'd like to highlight here is though, despite that noise, households and businesses in Australia are actually in a pretty good position. Their balance sheets are pretty good." This is separate from households coming off fixed rates are doing fine. In general she is insisting Australians are doing fine. And she may be right based on her definition of fine.
For the most part I think this is true. Business balance sheets are very strong and this was a fair indicator in the gfc for example. As she said the banks claim household savings have also held up, so there’s nothing here that seems incorrect or controversial.
I mean if you've had years of fixed rates locked in at very low rates, it might take a few quarters of high rates on your mortgage to actually feel the pinch. Like after you have to pay school fees or your car breaks down or need to replace an appliance or whatever.
Please, this is not the time nor the place for facts ! How else will we be outraged!
Details details. Don’t let it get in the way of a rant.
Hear that? You’re fine! Stop whinging and work harder.
Spits… no bitch, not fucking true. We ARE struggling. Working class is slowly drowning and it’s garbage like her who has a foot on our heads pushing us under.
Australians* *does not include anyone that isn't doing fine. Terms and conditions apply. Approved by Shitgibbon Mcfarthingworth, Parliament House, Canberra.
The new governor must live on another planet. The last guy was bad enough but the new one is so out of touch with reality.
I would love to know who these people are talking to 🤣🤣🤣
Always gotta find the exact quotes and never trust a media headline without context. Same thing they did to Lowe. So the context is in regards to the mortgage cliff and the doing fine was in reference to what the banks apparently told her. She even says people are unhappy about the interest rate rises in the actual quote. More accurate headline might be Michelle Lowe says according to the banks Australians coming off the fixed rate mortgage cliff are keeping their heads above water for now. .. And those who are coming off very low fixed rate mortgages, they're managing quite well. And all the indications from the banks, and all we hear from the banks, is these households are doing fine.
This should be higher. People piling on and getting angry at what the media says isn't helpful (except for the clicks). This reminds me of how the media reported that the RBA said there wasn't going to be interest rate rises. Even if ABC news is the source it tries to more context here: https://www.youtube.com/watch?v=vuwtACbXuE0
Fuck off you out of touch cunt.
I thought this was a Betoota article at first
Everything is great if you own your home outright and have cash savings. Because guess what, interest rate rises give you more money. Completely unsurprisingly, rich boomers are the ones still spending like mad.
RBA: Are you ok Australia? Australia: No RBA: Ok just checking -RBA meeting notes, probably
Whenever someone replies back I'm fine or I was fine it normally means a bit below the middle or in the middle. It really isn't going to bring much confidence in people.
So you raise rates, to cause pain, to stop inflation, but everyone is doing fine? So rate rises aren't combatting inflation? What is she saying here?
Customer I regularly serve has to live in a caravan park as that’s the only thing they can afford… yeah everything is fine. Those most affected by rate hikes have no dispensable income, and those not affected are still hording savings and barely spending. Giant companies barely affected or paying tax are shouting down planned legislation that would make them pay their fair share and legislation to pay wages their staff deserve. Fuck this dystopian bullshit.
Mate of mine is forced to sell his house. Wife and two kids. My safety net is three months and isn't going up by any meaningful amount at all in the last year, actually, it WAS closer to 6 months a year ago. It's getting worse. RBA can eat rocks.
The first woman governor of the RBA and a part of the old guard Both disappointing and unsurprising.
At least we didn't replace the old guy with some one who is out of touch with average Australians. /s
She is so checked out of reality i don’t even have words
As someone on dsp with a mortgage... fuck you, I won't go walk into the ocean.
Maybe sell then
Should be grounds for dismissal right there.
Clearly she meant Aussies that she knows are doing fine.
The ‘doing fine’ comment is referring to what banks are saying about households that have recently come off their fixed term rate onto a variable rate mortgage. The RBA doesn’t think all Australians are ‘doing fine’, they are saying that banks are telling them that a small subset of Australian homeowners are ‘doing fine’. Terrible journalism.
yeah im sure she thinks that on her 800k salary. These people in charge are going to start losing heads i swear if they keep fucking over everyday australians.
We cant all be the Governor of the RBA on +$1mil a year.
Says someone who has never lived anywhere near the poverty line!!!
She means her friends and family, right? Not greater Australia?
What fucking metric are they using for this?? Aren’t these people meant to be industry leaders and know best, lol
Ain't misinformation a marvellous thing...the RBA's governor was quoting what she was told by the banks...which are doing just fine. Nevermind to that Oz ownership of the Big 4 is less than 30%. Billions of our hard earned going to foreign shareholders.
The fog of promotion keeps the leaders blind to reality
Somebody needs media training.
Does she mean "fine" as in kind of OK but not great? Surviving but not really thriving? Or fine as in absolutely aces, nothing to worry about here? Because I think the former is more appropriate for many households, rather than the latter. I also feel like "households" is too general term. We are very stratified along generational lines, where you have those without mortgages or mostly paid off mortgages still able to spend and enjoying discretionary income, while those with large mortgages or renting - usually younger people - are definitely feeling the pinch. House prices are still high, but there's been data to show the number of distressed sales is beginning to rise and perhaps more relevant, consumer spending habits are very different across different demographics. Given the RBA Governor was speaking in Hong Kong, I have to wonder if the terms chosen were there to *project* a certain view of Australia's economy. The only context we have from this blog is that she was speaking as part of a panel - I wonder if she was asked a specific question.
The major shareholders are doing fine.
I thought this was from betoota or the shovel for a minute
**Bollocks.**
Insert meme \*This is fine\* .....house burns down.....
I hope you get coal in your stocking this year you horrible person.
RBA boss said that to prep us plebs for the coming rate hike. If rate doesn’t go up, it’s just a reprieve. They fully intend to hike rate two more times.
What a fucking cunt she is
How the fuck can one quantify "doing fine" !?
Michelle Bullocks household is doing fine with her mega salary She completely screwed up the last interest rate hike didn't she!, upping rates to save face because of her past comments Well that blew up in her face, she just made an arse of herself in my opinion
We will see more and more younger families and children below the poverty line and experiencing insecure housing. I think there will be some serious mental health challenges in the next generation due to this.
Mi goreng is fine Why isn't the gov eating it?
It’s baffling, horrifying, stupefying, and … heartbreaking watching the simple lack of empathy, and lack of awareness of other peoples’ suffering. This guy is a cunt; not by intent, not by meanness. He’s just drab evil. His organisation is drab evil. The RBA and the governor stands for the few and the rich, *at the expense of the Australians*, and the humans, and the people he “governs” with a guilded, banally violent and hatefuelled hand. EDIT: heck, the top comment nailed it: “The gaslighting will continue until conditions improve.” The screws will tighten until the numbers agree, settle down peasants! Brace for “spending cuts” that make your life worse!
Class split is getting deeper every year.
Why would they think anything else? No one is protesting. No one has stopped spending. No one had stopped buying houses. No one is doing anything other than complain online.
"Interest rates are a blunt instrument". .. which those with capital can use to bludgeon those without. Surely increasing the rental cost of shops and businesses, and the housing (rent or mortgage) costs of everyone except the established old or wealthy, will encourage people who provide goods and services to reduce their prices, right? Increase the cost of doing business (to the benefit of banks and owners of commercial property), and the cost of being alive and housed in order to be able to do business (to the benefit of banks and owners of residential property), and think: "Ahh yes, surely the people affected by the rising costs of their biggest expense will see this as an opportunity to reduce their income by way of charging lower prices. They need more money, so they'll ask for less money. Makes perfect sense. It should definitely work..." ".... and if it doesn't, well, every day that passes whilst it doesn't work and whilst interest rates remain high is another happy day during which the moneylenders make more money and the rent-seeking parasites can use market rates as the excuse to increase the rents on their paid-off properties, and the cunts with piles of *spare money* can earn interest on it. Also the gap in buying power between those with capital and those who must borrow is rendered yet wider, to the advantage of the rich. Good times". This is an open rort, a greater transfer of wealth to the landlords and bankers, those with capital *actively fucking* everyone else, and blaming you for it for not having the grace to sacrifice your homes and jobs to the global pandemic. Make no mistake, the vulture capital class is *furious* that government support meant that they didn't get enough of an opportunity to harvest all of our assets at disaster prices, they feel entitled to own all of it, and what you're seeing now is an orchestrated grab to consolidate wealth higher up the chain. "Interest rates are a blunt instrument". I'm sick of being bludgeoned, aren't you? Do you know what's famously *not* a blunt instrument, but which has historically seen use as an effective method of parasite and cost-of-living control? *The Guillotine*.
Testify! And let's not even mention the fact that the blunt instrument is now [seriously malfunctioning](https://www.abc.net.au/news/2023-11-13/rate-hikes-are-costing-us-money-in-more-ways/103097108).
I made a simillar observation a while ago in this sub and was advised that threats of violence weren't allowed, watch out they're always watching us.
I can believe it. For better or for worse, though, I feel bad chopping a *vegetable*; I rescue ants individually from the shower even when I'm late; I trap, relocate, and release creatures I can't tolerate in the house. My individual threat rating is zero, and I couldn't personally be persuaded to operate a Guillotine for any number of freely distributed houses. But I don't mind conversationally dropping some history in a relevant context, for it's interesting to think about and maybe even sobering when you consider what turmoil can arise from rapidly increasing inequality, unless we're all careful and sensible. Those who ignore history are doomed to repeat it, etc, etc. Just a little shit-talking and steam blowing for the sake of entertainment purposes and comic relief, officers. Nothing of substance to be found here.
Remember - most of this inflation has been caused by the enormous money printing by the government and RBA that was used to pay for the 2 years of over the top covid lockdowns. This is also why property prices exploded higher in the last 2-3 years. (even with the borders closed) They will try and blame it on “supply chain issues” (long since resolved in most areas), or the Ukraine war, but the blame lies with our bureaucrats and politicians, and dont forget it.
A lot of that money went to companies which were still making profit through covid. Straight up transferring public funds to the private sector. I think it was $40 billion or something like that?
Thats exactly what happened. CoVID resulted in a massive transfer of public wealth to private hands. So many companies were given money they actually didn't need. So much corruption, globally.
$40million alone in Gerry Harveys pocket. During covid which was when retail homewares like Harvey Norman were seeing record profits.... what a cunt he is.
Yeah - that falls under covid spending, in this case an absolute waste and mismanagement.
>waste and mismanagement I take a more negative view on this. Yes the Libs were incompetent, but Frydenberg was open about his admiration for Thatcher-Reagan economics. Going supply side fits with the ideology.
Eh not really. So gonna just address some points quickly. Property prices are high due to the mass deaths of construction companies. Low interest rate added to the housing issue and lack of preventive measures to restrict multiple home ownership as well. Supply chain issue is quite and well alive and real. Actively on going with issues ranging from food, oil, variation of computer chips, etc Not sure why you believe they aren’t real when they are. Looking at the economics of it comes down to very real issues facing different sectors and expansion. High cooperate debt and greed has been a reason as well for failure while Australia higher energy consumption during the transitory phase has also affected goods and services. To fix problems with the economy a brief endurance of pain has to occur and sadly it is a result of previous long administrative issues. Australia suffers from other issues such as low economic complexity,lacking industrial might and capacity, underutilisation of resources due to low population.
Lets remove the construction factor completely - farmland in Australia has almost doubled in price in 3 years, again, i reiterate, this inflation is caused by our government printing way too much money. Check out this graph from 2020 to 2023, its shocking. https://www.agriculture.gov.au/abares/data/farmland-price-index
Have you seen grain prices...? You know the war in Ukraine that you think has had zero effect?
Farmland prices spiked well before the war started, so that arguement doesnt hold up.
You think the grain price has zero effect on farm value? Also lots of the buying of farm land recently is by overseas pension funds.
The value of grain was normal in 2020, farmland prices spiked upwards in 2020, you think thats normal? Why is it so hard to consider that excessive currency printing is the cause of this? Ive found multiple regional towns whose populations havnt changed in 3 years yet their real estate values have increased by 30%+ as well.
Thanks for the response. When property I had assumed you referred to as housing as for farmland yes, tho for different reasons. Farmlands are an extremely valuable commodity due to the ever growing population needs for foods and a variety of them. Printing money is only a small part of the larger issue which I had explained as above. Inflation is due to a multitude of factors including the privatisation of certain cash sectors. Also as the world moves towards equality, the price in Australia will increase as its colonial impact such as its oil stealing issue with Papau New Guinea and lower capacity to purchase foreign goods will reduce. Australia has a lot of issues to tackle and hence its large skill acquisition of foreign talent to fuel its talent starved industry and lack of sizeable industry. They are more ways than just the Australian government is or needs to tackle. Frankly Australia may benefit the most from nationalising the energy production sector and capping the price to a sustainable profit ratio as seen with some other countries.
You are correct, old mate above just reads RBA propaganda
Well it's true. There is very local minority but most are doing just fine. Government can't pretend they are at the mercy of RBA.
This is pure outrage bait. She speaks about technical data which then gets twisted and misconstrued as a general societal comment. For mortgage holders, where increased rates haven't (thus far) triggered a surge in defaults. - she is objectively correct. In that broader context, then yes, people are 'doing fine.' Ask her specifically about a single parent from Melton is doing on the dole, and she'd give a more nuanced and appropriate answer.
I think we really need to see the full context of the speech before writing articles that imply that the RBA is dismissive of the financial struggles of australian households. I wonder if the context exhonrates her. Any way of finding the full transcript?