Why Is The Household Sector Turning So Weak?

[@vadeout.]

Spending on new cars is directly related to finance used against property equity which has significantly eroded over the last 12 months.

[@bgregg55]

The RBA isn't going to remove the rose-colored glasses anytime soon. As always, great insight Martin. Thx

[@TheSuperbazza]

Spot on. My hourly rate has not moved in four years. My rates and land tax have increased due to property valuations increasing. Food prices have all gone up massively. Energy prices increased. Basically to keep up i have to work longer hours putting me into a higher tax bracket so i have to pay more tax on every single dollar. People cannot now afford to be unemployed, retired or work part time so employment participation rates are up but not by choice.

[@evogardens]

I'm keeping my 14 year old Hilux, and started shopping at Vinnies.....

[@Ninco1969]

Better then the new lux ... cause I've got both

[@manlyrule1972]

Beat ya.. I'm keeping my 20 year old Rodeo. In 12 years all I have replaced is a power steering hose. It'll get me trough a few more years.

[@evogardens]

@@Ninco1969 That's what a NRMA patrolman told me as well.

[@evogardens]

@@manlyrule1972 Impressed. Some of those old utes were built to last.

[@t0nkin]

Your Hilux is only middle aged! 20 years on my Camry, going strong.

[@ulpo44]

Martin, one of the factors I haven't seen anyone address is the change in the dominant demographic when it comes to household and property purchases. At the risk of over simplifying... The baby boomers who drove the boom are now either maxed out in debt, or on lower retirement incomes, or have little interest in further accumulation of wealth as they age. The next generation of buyers are all younger and now have stronger market influence as a whole. These buyers... Late Gen X, Gen y, Gen z, have all had no income growth, high education costs/time, little job security, increasing living costs, etc... And therefore tend to be more financially conscious and conservative than their parents. I would be interested in your assessment on this theory and whether you have any data to support this.

[@rosariobonello7248]

Martin also inflation figure in OZ is HUGELY manipulated....That's where you will find the increase cost of living!!

[@amadd5641]

I agree. Insurances, council costs, gas, electricity, water, taxes, education, fuel, etc. etc. They're trying to say that the 2018 inflation rate was only 1.26%? What a load of baloney.

[@Andre_XX]

Biggest elephant in the room that nobody wants to see.

[@tobybrown1179]

Government excludes foodstuffs and fuels and insurances etc etc out of inflation figures to make people believe their money is not being eaten by inflation. But a few know that any figures like inflation, unemployment are manipulated to extremes...

[@rethinkscience8454]

Shopping centres mall vacancy rates are increasing rapidly and centre managers are reducing rent to keep shops looking occupied. Some shops are taken over by the centre management .

[@nicolle_2944]

It's the opposite herr. Rents went up, a few Retailers left, and were readily replaced.

[@steshaw6510]

I see more empty shops at Carindale Westfield

[@raymondread9484]

Nobody can live on an average fixed income, i.e. pension, superannuation stream, etc. in this long broken Australian economy. Many older Australians are delaying retirement plans whilst others are looking for 2nd or 3rd income streams. What an immense failure our inept politicians have been. SHAMEFUL.

[@michaelcleary267]

Yes,they ruined the economy,starting way back in the formation of the reserve bank.However no one forced the population to binge on credit as it has so the people have a part overall in this.

[@davidlazarus67]

Michael Cleary No the problems started in the era of deregulation and the take over of neoliberalism politically and neoclassical economics at the same time. Selling off the CBA was a mistake as well.

[@Vanessa-qj5hj]

Yes shameful of our politicians and the RBA who are ripping off the elderly with low returns on their fixed incomes and increasing their taxes while making them ineligible for social welfare.

[@michaelcleary267]

@@davidlazarus67 You know we used to have a textile industry,produced quality products,clothing and bedding.We here in Perth used to have the Midland rail yards, training apprentices in all kinds of industry, maintaining rail stock and employing many.When labour philosophy gained sway in the early seventies, tariffs were cut and cheaply made with cheap labour from overseas flooded the market and our industry could not survive.The Midland yards were closed and no more skilled workers trained.Our manufacturing has mostly departed and most of this is because of Government policy,reducing tariffs and taxing the life out of business.The taxes,all of them on business is staggering.The interference by government on business is criminal.Legalized theft by legislation.All by political process.Right down to local councils who increase taxes(rates) whenever they choose with no recourse.It took the courier drivers in the past marching on Canberra to overturn a tax decision that would have wiped them out.Political decisions, stupid ones have ruined our economy and business.Now most are employed in service industry and the Government has to tax us heavily(directly and indirectly)to run subsidiaries as health, aged care, defence (which it wants to make an industry.), National disability insurance scheme,(came in the day after Wayne Swan said there is not enough tax take.Figures prove the Government had never had so much tax.It was just wasn't going to meet projected targets.Increased spending on infrastructure that is aimed to meet requirements to be sure but also to keep people employed.I have seen the interference by Government in Australia grow during my lifetime.They act like they own you.I have to forgive them or I would be bitter.

[@raymondread9484]

@@Vanessa-qj5hj Exactly.

[@MrGaZZaDaG]

Well the government gets more taxes on council rates and utility Bill's which have doubled in the past 7 years

[@AirIndiaAnand]

It's strange as to 'How one can pay the bills and make a living with ONE HOUR of working classified as EMPLOYED. This is ONE factor I am arguing since 2000 when I landed here. I would consider this as a foul definition to pose a rosy picture of the Economy by Government its agencies and other industries that accept this definition.

[@soulfirez4270]

Hey Our government seems to live by the mantra , Fake it till you make it...

[@IamaNewCreature]

Thanks Martin! Can you cover the percentage of Aussies who are in debt? Seem like a lot of people buying things they can't even afford.

[@RyanUptonInnovator]

For a very long time Australia has been pretending to be rich. Pretending to be rich has advantages. We can trick others into lending us money. We can lecture, or educate, the world on how to be successful. We can sell our house for top dollar. However, we only have so many houses to sell before people realise the truth. We can only sell so many resources until we have none left to sell. We can only kick the can down the road for so long. We can only sell out our young people until there are only old people left. Let us start with a brief history. The real issue of the Australian economy is the death of innovation and manufacturing in the 1990s. In the 1990s the government developed deliberate policies to destroy entrepreneurs. The polices arose because in the 1980s a number of entrepreneurs became very successful through speculation and borrowing easy money. Examples include Alan Bond, Christopher Skase, Rene Rivkin and many more. The overnight success, largess and shady dealings created an uneasy feeling amongst the government and others. Capital gains were highly taxed. The banks stopped lending money and called in a number of loans. Many of the entrepreneurs, who ran out of easy loans, went bankrupt and jailed. Banks changed policies, only lending to property, because other forms of investment were now unsafe. New technology entrepreneurs could not get a start. Many left for other countries. A gap developed between the property rich baby boomers and the rest of the population who could not even afford their first home. Neighbours like China, and the rest of Asia, stepped in to fill the gap. Manufacturing income was replaced with property speculation and selling resources. Strategies that mask the fact Australia has no income other than to sell family jewels. China successfully out manufactured other countries, using Australia’s education system to train their workers. Education, usually seen to be a way to train our youth for new technology manufacturing jobs turned into a cheap way for foreigners to gain Australian citizenship. The lack of a future for Australia was recognised. Australia needed to become the smart country with technology investment. Paul Keating stepped in, with the creation of Superannuation. Super intended to solve two problems: invest in new start-ups; and fund the retirement of the baby boomers. However, super forcibly removed money from young people at a time when they needed the money most, further preventing funding of start-ups. The property speculators quickly stole the super investment money for property speculation further fuelling the property bubble. Bracket creep caused high taxes to rest on start-up incomes. Negative gearing gave further tax breaks to property speculators. We now have a huge property bubble, about to burst. The United States experiences a huge property market collapse called the subprime mortgage crisis. Australia is about to follow. Then Labour Prime Minister Kevin Rudd stepped in giving everyone $1000. The massive cash splash delayed the bursting of the property bubble. The cash injection revised the economy for a while. However, the fundamental problems remain: 1) Australia produces nothing; 2) Selling resources that will soon run out masks the lack of income; and 3) The property bubble masks the problem and will eventually burst. Heavily subsidised car companies left Australia further reducing our high-end manufacturing base. Australia’s manufacturing is criticised for high transportation costs and isolation. We follow the world in trends with an average two-year delay. Today the property bubble is back and about to burst. People work in very low-level jobs that service the property rich baby boomers who are rapidly exiting the work force. Jobs include landscaping, removalists, old-age care or FIFO worker. The work is highly casual, low paid, labour intensive and has no future. Australia can no longer support itself because Australia no longer makes anything of value. The solution is obvious. We need to start manufacturing again.

[@totalrecall8385]

I couldn't have said it better my self, all ive seen since the early 90s is a decline in Australian manufacturing as well as quality of life diminishing.

[@b4nectar]

What you have pointed out Martin is spot on that is why I am trying to get my cost of living down so my family has sum sort of sustainability! Good work

[@MP-ky8sr]

Martin, the clearance rate numbers are fudged, I had an auction in my street last weekend 49 Kiama street and looked for the property on auction clearance rate as it did not sell. it did not appear on either real estate .com r on domain.

[@WalkTheWorldDFA]

Agreed, phony numbers on low volumes...

[@johnl4469]

Thanks Martin. As usual your reports bring to mind what we older Australians lived through in past recessions, in particular the 1982 recession. It seems to me the RBA officials are looking at what is happening now and trying to make sense of it as something new when it's pretty much the same every time a recession is coming on.

[@AnnabelleAstoria]

You look like my Uncle David. He is clever as well.

[@mitchellm1451]

i've been spending money since last december...on plane tickets from australia...shame i always end up back in queensland lol...always a treat to catch up on your videos martin...mitchell/queenslander currently in the uk

[@kienhwengtai8113]

Too much debt, overtaxed, underpaid and rising living expenses ...

[@marvinhagler6192]

Underpaid? Minimum hourly wage there is about U$ 14/hr. Try here in the wheatbelt around $9.2. You folks get paid more than us, Canadians, Brits and yet still complain.

[@Irishandtired]

@@marvinhagler6192 The wages do not make up for the huge taxes and high cost of living.

[@marvinhagler6192]

@@Irishandtired well that's Australia problem as people who have no skill want to earn good wage while only working 40 hours a week. Here in the midwest a lot of non skill workers put in 60 hours a week.

[@yusuf.alajnabi]

@@marvinhagler6192 must be a really depressed life what is the drugs, alcohol and suicide rate over there probably high.

[@michaelcleary267]

@@marvinhagler6192 You are just a little further down the road than us,you formed your central bank 50 or so years before us for one thing.We will get to you if things continue like this in OZ.Many already work two jobs to make ends meet and if you have a family it's mostly required if you work in the services sector.I spend a lot of time and effort legally avoiding taxes.Ride a motorcycle not a car,less fuel tax,Less registration.Buy overseas when possible,I work a job, includes accommodation and meals,all utilities.I know that not all can do this,I,m single I mention.

[@rrssmooth6643]

Doing good work Martin. People must be starting to catch on. Nearly 17000 subscribers.

[@timothypezet]

I was able to negotiate a lower rent in Perth. 100% of the savings went into eliminating debt.

[@WalkTheWorldDFA]

Interesting, paying down debt is a good strategy in the current environment.

[@steshaw6510]

In your current property or when you moved compared to the list price?

[@merlingeikie]

Again, worthwhile detective work Martin and team. What I find concerning here is that the taxpayer funded RBA, is using its time, to cobble together alternative, albeit, unlikely hypotheses, for the actual decline in; spending, GDP, employment and citizenry levels of confidence, in the economy. The use of the absurd test of employment as 'working one hour per week' is an example. Fact is, unemployment is on the rise, mortgage defaults are bound to follow, and the RBA's message is, 'business as usual', and 'nothing to worry about'. Citizens and participants in the economy, are looking a fairly bleak reality, square on, whilst the RBA is seemingly making a point of not doing this, and in fact portraying a unreality which suits the political whims of their masters. What a pity.

[@col2959]

Hi Merlin. Are you sure about the RBA being funded by the taxpayer? I can see why a privately owned Rothschild Central bank would be funded by either of the Australian governments. The parliament of Australia , or the commonwealth of Australia. The first of which of course also a Rothschild owned entity listed in us securities and with a Washington address. Sorry I'm going off course. But I am curious about what you said and if your right, I think I will be so furious il explode..... Col

[@Vanessa-qj5hj]

Hi Merlin. I'm pretty sure the RBA and most central banks are not reliant on the taxpayer. The central banks earn their money from fees they collect from being the private bankers of the banks and Governments. I asked a former RBNZ trader who gave me this information.

[@MrScoobiess]

In July 2018 an estimated 700,000 workers had their penalty rates adjusted .This was sold as a boon for employee and employer alike ,I wonder what happened to the boon did it get lost on its way to the economy. Its supposed to drop more boon this year and next , maybe the government plans to equip it with a GPS map this time so it can find its way.

[@charlesponzi9608]

Ultra-low interest rates are also hurting those who are hoping to retire in the future.

[@tobybrown1179]

Charles Ponzi yep, and there is a lot of them baby boomers in retirement with bank accounts full of cash just ripe for the picking in bank bail ins...

[@davidlazarus67]

People are hunkering down because their finances have hit the wall. There is also no escape via refinancing when property prices fall, which can easily account for the auto sales slowdown. The surge in employment in minimum wage jobs is masking the slump in households incomes and employment statistics. They may not be unemployed but their incomes have shrunk, basically eliminating disposable incomes. Martin’s stats show where the problems are but the government stats mask the problems. You now have a situation where garbage stats result in garbage analysis by the central bank and government.

[@mikezog1030]

I wonder how many of those "employed" people are Uber drivers...

[@davidlazarus67]

Mike Zog It will probably be smaller than you think. The numbers will be mainly part time retail and service sector jobs like nursing home jobs which will probably pay close to minimum wage levels. Delivery drivers of various types will also make up another slice of those jobs. So Uber drivers will be a small number

[@steshaw6510]

Govt statistics = fake statistics

[@chisel83]

Why is it so?

[@blobfishking9143]

I can tell there is something up because my clients are holding onto their (my) money. We are having major cash flow problems because clients are not paying for 60-90 days rather than 14 days a year ago

[@henryholt1359]

My phone has stopped ringing and inquires by email are low

[@WalkTheWorldDFA]

Blob fish King, what industry sector are you in?

[@blobfishking9143]

Walk The World I am a Licensed Surveyor (Land) with a small business in Adelaide. While we are still quite busy but clients are holding onto their money.

[@henryholt1359]

@@WalkTheWorldDFA I run a traditional sash window repair business in Sydney , employing 3 people,, business has dropped of steadily in last 6 months to a standstill at the moment.... seems people in the Inner City are still able to finance the maintenance of an existing home they're holding onto.. but the clients who were cashed up, having just purchased their new home, looking to renovate have dried up.. let's see what it looks like after Easter. I have to say it doesn't look good. thanks again for your work

[@GregTyson]

@@henryholt1359 Can you replace the spring assemblies in spring loaded double hung windows? (Stegbar cedar) Cheers.

[@kirstinstrand6292]

Perhaps people have realized that spending helps banks but not themselves. Debt is best for Bankers, not for people.

[@michaeljp9605]

Great insight Martin as usual thank you 🙏.

[@MikeDaFinder]

Great video once again. Please keep up the great work.

[@thomasranjit7781]

All Ponzi financial banking system must come to their logical end..... ..

[@davidlazarus67]

Thomas Ranjit Very true but hard for people to comprehend when they think they are property geniuses, so ignore the Ponzi aspect entirely.

[@manlyrule1972]

Hi Martin, Just a question that I have always wondered. If a bank ever does goes bust. What happens to all the mortgages that the bank holds?

[@WalkTheWorldDFA]

Still assets which are on-sold, transferred to another bank - loans remains....

[@manlyrule1972]

@@WalkTheWorldDFA Thanks... Keep up the great work.

[@songforguy1]

@@manlyrule1972 if one of the big 4 collapses then more than likely they all are in trouble making it difficult to see who would be able to pick up the mortgages. It could be a mass call on the mortgagees to pay the balance which would lead to massive defaults and foreclosures but if there were possible lenders who could manage to take on the mortgage they would be renegotiated to a much higher interest rate I would imagine.

[@aspant4814]

And our lazy politicians will gladly accept this PhD rubbish and will also rely on these bright-yet-idiot persons to rescue a deteriorating economy. Wouldn't it be nice if we had politicians that can come up with something concrete like increased manufacturing and processing our primary products to create employment and real jobs with real incomes rather than this montized BS coming from the financial industry based on wealth effects and indetebtness. Would make you laugh if it wasn't going to be so devistating. Good work again Martin.

[@shareefcondon]

does 'Politician' mean bought and paid for treasonous liar working for a foreign registered and owned company DBA as Aust Govenment Inc. ? I think we have a 'small' problem ?.

[@hounddog7256]

But "ol mate" Chris Joye says "everything is just fine"... nothing to worry about here - just more good times ahead... 🍻 🎉 🥂

[@warningsigns4526]

grey hairs at the casino, beach, restaurants, golf course, amusement parks, boardwalk, when they SHOULD be helping with the grandchildren. Their children are paying for daycare expense when granny and grandpaw are living it up. Don't tell me ain't so, I live by the beach and see this every day. Most spend the week visiting their doctors with their array of ailments also. My gosh this is sad. Wait till the pensions stop and the music stops. Who is going to assist them? They are real quiet right now. Won't hear a peep until it goes down.

[@muradtalukdar4401]

It's because people are so wealthy, they no longer need to spend money. The wealth effect has meant that everyone is 100% satisfied with their lives. They are now so content, that consumerism has lost its gloss. The debt they are in, actually brings joy. It means they are liberated from worldly desires. Who needs to spend money when debt makes you happy?

[@sctpc]

So deep, I have so much im wasting my leftovers on Silver and Gold

[@haroldgrey134]

@Patrick W reread it as if he meant the exact opposite of what the words actually say ;)

[@billboyd2009]

What are you smoking? And where can I get some?

[@crouchingwombathiddenquoll5641]

Glass half full kind of bloke 👍

[@5688312]

what is the rate of under-employment and zero-hours employment?

[@bondisteve3617]

Thanks Mr. Martin. Saw Johns effort just now. Not bad Mr. John in the eye of the Beast.

[@CookieMonster-wy4qb]

Bondi Steve is it on you tube where can u find the debate ?

[@bondisteve3617]

@@CookieMonster-wy4qb Da!

[@bondisteve3617]

@@CookieMonster-wy4qb kzbin.info/www/bejne/pILYfICporuka8U

[@CookieMonster-wy4qb]

Bondi Steve thank u steve much appreciated 👍

[@davidlazarus67]

The deputy governors assertion that lower rents mean higher disposable incomes for renters is an error. There are more rental properties on the market so they are empty. Those made homeless may have rented elsewhere but would not benefit from lower rents because of higher moving costs.

[@WalkTheWorldDFA]

I agree, and more households are in rental stress...

[@thomasranjit7781]

Due to this fake monetery policy by the 1%who control the world banking system along with the crooked politicians there has been massive wealth thansfer to the 1 % from the rest 99% of people..U can google it.

[@frankdatank5753]

1 per cent own 90% of the wealth of the world rothschild rockefeller jeff bezo's ect...they want mass immigration ect... to make more money new migrants purchase new phones lounges tv's ect...this is why gdp is a big deal the government are controlled by the elite the more people the quality of life dropd the sheep are noticing. on the 2hr drive in congestion home.

[@H0LDENSUX]

Interesting how Scott Morrison plans to reduce income tax but at the same time maintains the level of government expenditure on the basis that resources sector is providing the source of government revenue. An income tax cut would simply drive inflation and cause an increase in the cost of living because you effectively have more cash in the economy. Households would simply use that extra cash to either pay off existing debt or spend it on essential goods and services that they have previously avoided due to rate of inflation being higher than their income growth . The Federal government will continue to borrow money and increase public debt as a driver for economic activity while large corporation are able to successfully avoid tax rates similar to what is paid in the household sector. What I don't understand is why the general public keep voting in both these major parties, knowing full well that any future government will simply employ past policies that do not deal with the major fundamental issues of low net disposal income growth, low productivity and the bottlenecks to economic growth.

[@imemine7]

Another point ia that many of the jobs that have been created are in areas such as aged care which are often low paying casual jobs.

[@henryholt1359]

Uber

[@soulfirez4270]

Welcome to the wonderful world of gentrification . All those years of pushing manufacturing out of the country , what do you end up with ? The rich working in finance and the poor working in the service industry for the rich .

[@bluesky9855]

I also noticed a house on sale in my neighbourhood, but I could not find it in realestate.com.au or domain.com.au. The board there in front of the house.

[@ericg9414]

people now might be more sensible in their spending. why replace for new if the old still work even without the bells and whistle. paying existing debt might be the first priority. Debt is I think when you exchange your time with money..

[@kirstinstrand6292]

I have not had a car payment in 20 years and my auto insurance is less than $50 a month. Love it. I don't need shiny new.

[@mikezog1030]

The numbers reflect that people have in the past bought cars off remortgaging their property, and can no longer do so....

[@jamestaylor8577]

Haha, love when Martin North has to school the RBA and show them how to do their own job.

[@tobybrown1179]

Approximately half of everyone electricity bill is spent on contracts to clear vegetation around power lines. Would like to have one of these contracts, and contract the work out... money for nothing

[@mikezog1030]

I would be interested to also know if the population growth figures for Australia loosely follow the property prices with a delay of say about 4/5 years while they save for a house?

[@Henry1965ism]

So people were using the equity in their homes to buy new cars? And the moment they drove off the dealership with their new car the value of it dropped by about 15%. Never use equity to fund lifestyle because they are depreciating assets.

[@andrewb3497]

The RBA is living in the past with their "view" of unemployment and given the "new" types of "on demand" employment (Uber /food delivery/Airtasker etc etc) then these people will be hit hard by a contraction in discretionary spending.

[@henryholt1359]

Like the 2 Bangladesh guys riding pushbikes with uber eats on their backs I nearly ran over today

[@WalkTheWorldDFA]

Good point... when are jobs not really jobs at all?

[@michaelcleary267]

Yes,I,m a cook and have taken a job in North western Australia at a place with no competition because of what's coming.That has a fuel business,not just food for this very reason.

[@markstevenson6852]

Concluding remarks Martin...well said.

[@WalkTheWorldDFA]

Thanks...

[@bruce5895]

here in the states 7 million people are 90 days late in their payments in their car loans and going into default, same thing happening in Canada. More houses for sale at lower prices and people aren't buying like they should. New car sales are slowing to a crawl. Used car sales are good. I would say we are going into a deflationary period where prices are low. Alot of stores closed now in the states and Canada due to lower sales. Us and Canadian dollar remain high, stock markets are still setting record prices, gold and silver not going anywhere, as soon as they go up the big banks sell their gold etfs or short the market and knock the price back down, crypto currencies remaining steady and continuing to rise slowly. Rental markets remain at very high levels because of high demand and a shortage of rental properties. Immigrants and migrants flows unrestricted entering Canada at very high levels because of government policy stating everyone welcome, though once they get here there is no place for them to stay, but they do get cash every month, free health care, dental care, language training and job training. Us flows restricted by President Trump he says where full up and can't take anymore people. Overall its really not business as usual.

[@Shymad]

I find your analysis very insightful, being a renter in Sydney, is it not an opportunity for me to enter in the property market in next 3 to 6 months time.

[@grizzz6884]

how much hunkering down can some business like supermarkets take before they fold ? what if their bottom line get's so bad, they say it's not worth it

[@tomdennis8756]

Hi Martin, Love your work. We here much about "supernatural events", how will the proposed QE and a loosing of monetary policy impact on the declining house prices and the sliding economy in Australian?. I am a New Zealander and wonder if and when the Australian situation and sentament is going to impact us more markedly.

[@yusuf.alajnabi]

People are not using there homes as atm's anymore when house prices were going up people felt richer but they forget that you don't own what you still owe. So if you own a 600k house and you owe 550k then your net worth is 50k not 600 like so many people think.

[@GregTyson]

and dropping.....

[@soulfirez4270]

You dont even have that 50 k , having your house valued at and actually getting it sold at , is 2 different things. People using there equity as an ATM have fallen into a very very bad habit. House prices only rise so she will be right , RIGHT? Yeah right up to when the house prices go down . Your house is a home , not an asset to be financially leveraged ,and used as an ATM.

[@mikezog1030]

Seriously? According to the RBA, social assistance and NDIS slowdown (which aren't really a thing and have been constant) is what is driving the lack of demand for million dollar properties in Sydney and Melbourne? I have two comments/questions: a) The total government spending on these could surely only be a small percentage of the total property transactions that have been going on in the past , and b) what PLANET are these people living on!!!??

[@murraykrause8869]

Where would the health sector be without government support ? How much of our economy floats on government handouts? If taxes doesn't cover it does that mean the 'bond' market and if bond buyers stop or demand higher interest rates - what then?! aussie dollar needs to fall -forex matters

[@michaelcleary267]

@Maaa-aaa-aaate It will turn up those printing presses when the chickens come home to roost.Then we will see the Dollar fall and the banks in trouble with short term borrowing from international money markets.Which they will have to pass on to borrowers despite what the reserve banks sets the interest rate at.Credit will dry up because of risk in Australia and the reserve bank will have to print or the banks will have to bail in.No country in modern history has escaped the position Australia is in before when their economy was similar.How could we?

[@soulfirez4270]

@Maaa-aaa-aaate flogging a dead horse , There strongest tool the interest rate they kept it down at extraordinary low rates . De incentivizing savings , so no money for capital investment ( you know productive investment) and nothing but bad lending on housing . Once again they will try to put the foot on the accelerator(interest rates) but it just sputters because the economy is out of gas .

[@thomasranjit7781]

Australian economy is between the devil and deep sea..... forwarned is forarmed..

[@yusuf.alajnabi]

I love that saying I use it all the time.☺ forwarned is forearmed

[@boboften9952]

Professor Steve Keen look him up .

[@davidlazarus67]

Maaa-aaa-aaate He was the one who pushed the banks creation of money long before the central banks finally accepted that reality. His models would demonstrate that a squeeze on households is a result of policy.

[@davidlazarus67]

Maaa-aaa-aaate He was the one who pushed the banks creation of money long before the central banks finally accepted that reality. His models would demonstrate that a squeeze on households is a result of policy.

[@davidlazarus67]

Maaa-aaa-aaate I had a look at his mentioning of bank created money and easily found mentions in 2015. The Bank of England did not come out with their identical analysis until 2017.

[@schumanhuman]

@Maaa-aaa-aaate I have several differences of opinion with him, but Keen has always stressed the neglected importance of role commercial banks creation of money and it is central to his models (which I think are flawed for other reasons), at least in the last 5 years or so since I have been interested in economics this has been so.

[@shareefcondon]

@@davidlazarus67 Yes, and Prof Richard Werner did the first empirical study to prove it. That is why the BoE came out.

[@audie-tron9219]

FIRST!!! FINALLY I'M FIRST!!!!!

[@chisel83]

Audi e-tron second 😂

[@evogardens]

Almost....

[@AviationSports1978]

One day you will get that elusive medal and we will shower you with gifts :)

[@rabidsminions2079]

Do you want a medal?

[@Ninco1969]

My girlfriend said that last night....go Cialis yeeeew

[@gyzmopower7599]

Peter was looking after my money and Pauls money. One day I Took money from Peter to pay Paul. Paul got greedy and I had to go back to Peter to pay a lot more to Paul. Eventually Peter ran out of money and now I can't pay Paul anymore. Peter said I need some of the money back from Paul but Paul has blown it all, sent it overseas and hidden the rest. Wonder how it will end?

[@RTOneZer0]

Australia is a distinctively socialist country where the government is addicted to taxes.The marginal tax rate of 47.5% kicks in after AUD180K and with medicare levy, budget repair levy and superannuation levy for high income earner (div 239), the effective tax rate is 50%. The red tapes of taxation system is choking every economic entities and economic growth. In the last 20 years, the Australian economy growth has come from mainly mining sector and property boom. When China economy cools down, so do the mining and property sectors.

[@wingkeechan5329]

Households are probably waiting for the sales of the first self-driving fully solar-powered cars from China. The latest technology at the price of a BMW motorcycle. There would be an emergency kite in the booth too.

[@yusuf.alajnabi]

Hahaha

[@tonymango48]

Firstly

[@chisel83]

Tony Dickensen 🏆

[@audie-tron9219]

I WAS FIRST!!! I'VE GOT SCREENSHOTS TO PROVE IT!!!!!!

[@chisel83]

Audi e-tron nope beaten by 10 seconds

[@audie-tron9219]

This is bullshit. Fuck you guys.

[@audie-tron9219]

Just got in touch with KZbin head office. They have confirmed that my comment was posted 14.2 seconds before yours. Sorry.

[@evogardens]

Fourthly

[@champprill1527]

You need to speak more quickly

[@anthonycresswell4690]

Champ Prill someone older asked him to slow down the other week, but I’m with you and prefer the quicker delivery

[@WalkTheWorldDFA]

I simply cannot win on this one... just play it faster....!! Several people asked me to slow down a bit....

[@dukeoversteer]

@@WalkTheWorldDFA I like the way you have it Martin. Keep up the good work.

[@crouchingwombathiddenquoll5641]

I find thoughtful, measured delivery spot on. Just the right amount of gravitas for the subject matter.

[@rosariobonello7248]

@@WalkTheWorldDFA Just be yourself Martin, best policy. I Wonder how many kids these PHD's have? My guess 0