Immigration is patching over the cracks in the economy. But the 1 million immigrants in the last 12 months has overpopulated Australia, causing the housing crisis, keeping inflation high, but the government needs them to make the economy rosy.
Don't understand this obsession of avoiding recessions. They are essential to trim the fat in our economy. If we don't, we'll pay the price sooner or later.
💯 percentages Bro Ression is a normal part of the Buiness cycle By these Greedy overlords trying too avoid them by manipulation of Intrest rates or however They make them 10 times worse when they do arrive 😮
trimming the fat is strange verbiage. Everyone loses in a recession, even the big boys, and thats ok. If we dont have them we end up with a zombie economy where the bottom 90 percent are struggling while the top 10 percent thrive.
From an economic stand point it makes sense, but it makes the government of the day look bad so the government will do what it needs so the recession doesn't fall on their clock, if it does people loose jobs, loose houses maybe even divorce and loose families, the gov is then blamed and loses the election,this is why they avoid it at all costs
Recession is temporary, hyperinflation is forever. Creating hyperinflation to avoid a recession shows that the politicians will do anything to keep house prices from dropping.
I don't know why the Kook insists we're not in a horrific downturn just because overall GDP is still slightly growing. Clearly we are in a downturn,as he says, in per capita terms. That's what matters. Overall, GDP doesn't mean anything to individuals (unless you're very rich of course). If we are in a per capita recession, we are in a recession period.
Well said mate. You're absolutely correct. Now imagine if state governments were running balanced budgets, not accumulating hundreds of billions in debt which adds to GDP. And all those additional 'public servants' they employed with borrowed money didn't have jobs. And imagine we adjusted GDP for the real rate of inflation, not the doctored CPI - now imagine where GDP is. Negative 5% maybe.
So the RBA lifts rates to reduce inflation by slowing down the economy, specifically through the private sector but our government continues to spend and drive immigration which is stimulatory and working directly against the RBA mandate while the rest of the population suffers. Great plan.
What is left out is the government has two choices either wage growth occurs proportional to inflation or they flood the job market funded by existing tax payers., It doesn't really work because of a million immigrants recently imported we have just 40,000 of them working so wanna know why we paying through the nose for everything we have 960,000 more people to support.
@@brendanalfo411 They could simply stop spending, get out of the way of the private sector and let the free market find its equilibrium. Will there be pain ? Absolutely because reckless actions have consequences.
Ill tell you one thing, for the people who are struggling to pay their mortgages due to the rate hikes, one interest rate cut will not encourage them to spend money all of a sudden...
I live in CBR the size of fed public service is ridiculous, the inefficient bureaucracy, not the front liners like nurses and police (which are all state based), we seriously need a conversation about what kind of economy we want as little incentive to aspire to opening any business or venture here.
All this pain for for what? Price inflation was always going to come done of its own accord with supply adjustments. The inflation has never been the consequence of demand pressures - how could it be when GDP growing at less than 2% for 2 years. RBA policy has probably inhibited the adjustment to lower inflation rate.
The US cut 50 points and 100 points in 2020.....Prior to that was 2008. They couldn't cut 50 point during that 16 years because their rate was so low outside of rate hikes.
Yes, but the government and mortgage debt in Australia is so much greater then 10 or 20 years ago. A 9% mortgage rate today would bankrupt a lot of people and Australia would be in a recession. We are heading for a recession on a 6% mortgage rate as it is…
Would be fine if everyone had a 100k loan.... This country is up to its eyeballs in debt, every point of a percent makes a huge difference compared to 20 years ago and the governments solution to it so to get more ppl into levels of debt they cant repay.
@@sirdekkar ai It's not the government's fault that people don't think if they can afford it and if they can afford the loan in 10 years if interest goes up, and people have gone mad on house hunting and buying bigger and more expensive programs on TV have fueled that as well
Not when it comes to government spending it doesn't. Gina Reinhardt recently stated out of a million immigrants recently joining Australia only 40,000 have a job. Tax payers will have to pay for the rest once government budgets and our fiat currency reaches maximums. Which if China related resources go off-line we will have a very different perspective on everything mentioned on this pod cast. We talking possibly a 30-40% crash in the federal budget.
Aussie dollar will be stronger against the green back later this year if the US fed keeps reducing rates and we hold. Probably near 80c. It puts a lot of pressure on commodity sales as they become more expensive for over seas markets. Government coffers will suffer and its going to force the RBA to cut early. Inflation and peoples personal wealth are only parts of the issue. My 2c.
Add to this the government power bill hand outs will help lower the inflation figure on paper. Inflation will fall to 3 and under. We will then be able to offer one rate cut and Albo will call the election not long after saying how much good work he has done.
RBA has a real estate hyper-bubble to protect. Their job is to preserve the profitability of the commercial banks, and the borrowing or political needs of the government. The low rate of interest you earn on your savings is of no concern to the RBA.
Exactly, for those of us who are trying to save, maybe for a deposit or something else, need those high interest rates to be able to get anywhere. How are low interest rates good when they kill your savings, increase inflation and increase house prices. It's basically if you don't already own housing then you have no chance to catch up when interest rates are low.
I’m getting me a board!! Like Steven!! Love it soooo interesting sooo educational thank you for your amazing questions Mark and Stevens ability to break down so many difficult concepts to the rest of us❤️💯
The average Perth mortgage in 1990 was $67,000 today it is around $550,000. Imagine what a 11% interest rate would do to the economy. Ballooning debt is why interest rates have to stay low. Governments need to keep interest rates low so that they can repay their fiscal debt and keep the economy chugging along.
"Abolishing negative gearing, reforming capital gains tax, and banning foreign buyers from purchasing residential property while encouraging them to invest in commercial property could help balance the housing market. Providing tax incentives for first-home buyers on their mortgage interest payments for the first ten years (similar to the U.S. housing policy) would promote home ownership, reduce demand for rental properties, and lessen the burden on taxpayers in the form of rental assistance. Additionally, 80% of newly released land should be allocated to first-home buyers."
So we are just going to ignore the inverted yield curve, un inverting. Righto. I think the fed cut by 50 because they see some deflationary weather on the horizon. That's just my guess.
RBA will be forced to follow the Fed. But our "experts" always try to hold out longer, and commodities give our financial system a little extra cushioning which they will try to use to the maximum. These guys talking have big gaps in their knowledge. They actually trust what the central bankers say!! Trust the bond market, not the political players: and yes the RBA people are ALL political players.
Even top end restaurants are putting in table service apps that work. Good restaurants can nearly halve their service employees. The apps are working and are even providing a better experience for the customer. The restaurants will keep the gun servers and punt the hopeless ones . This will grow quickly and and increase unemployment.
With National gdp and inflation running way higher, aren’t we technically in a recession and have been for some time as the NET growth is very poor and not looking at improving in the near term? Not an Economist, but do understand numbers
CPI increases for Aged Pension Asset Test since 2020 to 2024 have grown $100,000. We can start there. Someone with a house and $1.283million does not need to have access to an aged pensiin when they can live off the interest alone
@@ChickityChicken it's not the rate it's the qualifying bar. Home not included + $1.283million, then they get Aged Pension plus, $25k ACAT+$5k State Concessions off rates, car registration etc. Try selling that to people now. Then add onto it houses going up again. Soon people will sit on $1m home + $1.283m assets and then get Aged Pension+ACAT+State Concessions which doesn't include Medicare or other programs. Easily Aged Pensioners will be sitting on $2.5m+ minimum and still get $80k off taxpayers a year. Obscene....has to change.
@@ev132-e2h Yep, or we van just continue putting young people wanting a family in tents. Big election coming. Suspect the greedy and selfish will prevail. Almost wanting a war as a reset.
Silly comparison 17-18% on today's home loans do the math first. My dad lost his house back then due to that period it cost him only 44k to get a brand new house built we are in a different world now.
Could immigration as a driver of economic growth be a trojan horse, its drive seems to act as an anethama for the private sector appeasing them that the gov. has their best interests firmly in sight. I am of mixed heritage and look like i was born in another country but born in australia , point is im starting to understand xenophobia , i feel crowded , whats the real motive ?
In regards to interest rates, look at the bond market. As for general markets, they are at record highs in the US & OZ. Big business making huge profits thanks to inflation. Now entrenched in their pricing. Sure fuel is dropping, but how is everyones insurance premiums and other input costs.
What is with these idiot economists who think it's a good idea to have your 'core' cost of living going up another 2.7% annually, on top of how expensive cost of living already is? Why would working class Aussies want to have a government agency (RBA) that deliberately enacts policies to ensure your cost of living keeps going up? Ask yourself, why dont they target ZERO inflation. Stable prices?
0% inflation is not possible. Even in a free market prices would go up and down due to supply and demand. If inflation was in target at 1-2% and wages matched...that would be a perfect would. Money printing and a debt based economy is the real problem that's robing the middle class.
@@jamesmclean47 well said mate. I'm not suggesting it's possible, just like targeting 2.5% inflation has been a disaster for the RBA the last few years. I'm saying that if we're stuck with an RBA, wouldn't we at least instruct them to attempt to target zero inflation? I'd prefer we abolish the RBA and have a free market in interest rates.
If you ratio the interest rates between Aus and NZ. It will be the same as the difference between median house price between same countries....it's all relative
This is why I think economy is doing so poorly even though our unemployed figures are very good. The amount of money most jobs pay is not enough to cover essentials and to spend on discretionary items. Say for example 30% of Australians who own their home out right and have investments, they can can only spend so much on restaurants, holidays, electronics, entertainment etc etc... they can spend to enjoy life. That is only 30%, the rest of Australians 70% are borderline broke, you have a shortfall of millions of people who can't spend money on discretionary items because their jobs do not pay enough to have anything left over after housing and essentials, it is certainly the case for me and it is certainly the case for many people I know. The number 1 reason that is causing the poor economy is in fact High House Prices, and High Rental Prices. It is the number 1 reason, period. The secondary reasons are expensive grocery items and expensive energy costs (electricity and petrol) and for quite a few people in Sydney, toll roads. If you just fix housing cost, you will find a lot of people who work, will have extra money left over to actually spend on the economy. This is what happens when the vast majority of wealth goes into house, you don't have anything left for anything else, and since housing doesn't produce anything, you end up broke with a poor economy.
Great and interesting content , but your previous guest wanted rates significantly higher to essentially scorch earth home owners / spending because recessions are ok 😂 economics is all build then burn theory the RBA should just admit they want a recession because that’s their only policy lever
I think we need "another recession we have to have". The problem is that we need to "break the back of inflation" as Keating would say. On the one hand we have the RBA saying we need 5% unemployment (foot on the break) and the Labour government ison a spending spree (foot on the acceleorator). This is ridiculous and the federal treasure is proud of himself. Really? If Labour did not go on a spending spree we would be in recession right now. Which is exactly what we need to break inflation. Once inflation comes down the RBA will lower interest rates so the sooner that happens we will ALL be better off. This is a recession we have to have, again!
@@AussieZeKieLno. There is a difference in that government spending and immigration are keeping businesses afloat. When unemployment jumps to 10% you will know you are in a recession.
@@aotk.mp4 A recession is 2 consecutive negative quarters of growth. Per capita recession is not the defination of recession and in the context of a technical recession doesnt mean that much. The RBA is struggling to get unemployment to 5% and that is the target and is needed to slow the economy enough to fix inflation. The RBA would NEVER let unemployment hit 10%. At the same time the RBA does not want to put the brakes on too much and their strategy is to let inflation come down slowly. I do not agree with this strategy because people on the mortage belt are losing their homes. Get it done quickly. Labors spending spree has messed it all up. Why should people with mortgages bare most of the burden of high inflation?
Wage increases in the public sector between 2013-2022 averaged 1%pa. It's still miles behind where it should be. These sooks (tradies, business owners, property mogul's) that carry on about public servants and their pay rises, need to take the 3 mill in cash from under their matrasses and start spending!!!
The amount of cope from Kouk is always amusing. Everything he ever says is either to support the labor party or real estate. That’s it. Nothing else. Pure bias. Consistently wrong.
We’ve been in recession for 12 months real rates are negative Government is just kicking the can down the road Rates need to go higher unemployment needs to rise Gold is warning all of us yield curve is re inverting The inevitable will come
Nope they're cutting because shit is about to hit the fan. Look at the US 2-Yr yield compared to the Fed Funds rate. Look at Chinese yields crashing. The Bond market is pricing a hard landing. We're screwed. This will be worse than 2008.
@@GF-hg7op hope so. plenty of people will be swimming naked when the tide goes out. Keep buying defence (not defensive) stocks. The main events are just starting. Russia > rest of Europe and then China > US by mid 2027.
Inflation isn’t below 2% with a downwards trajectory. If inflation stabilises at 2.5%, rates will stay the same. They won’t cut rates unless inflation drops significantly below 2%
Immigration is patching over the cracks in the economy. But the 1 million immigrants in the last 12 months has overpopulated Australia, causing the housing crisis, keeping inflation high, but the government needs them to make the economy rosy.
That is RUBBISH 101
@@chrishalious8194 No, it's 100% on point.
@@Hunty49 Sorry no it's NOT!
@@chrishalious8194 Prove it isn't. Oh, wait, you can't.
Really strong points there guys
Government is hiring in the NDIS the only game in town unfortunately totally unproductive
Well since everyone's trying to get blood out of a stone they (NDIS) could do with some cheap suited lawyers
Don't understand this obsession of avoiding recessions. They are essential to trim the fat in our economy. If we don't, we'll pay the price sooner or later.
💯 percentages Bro Ression is a normal part of the Buiness cycle
By these Greedy overlords trying too avoid them by manipulation of Intrest rates or however
They make them 10 times worse when they do arrive 😮
Political suicide to have a recession before an election.
Economists don't care much for emotion. Trimming fat is someone life.
trimming the fat is strange verbiage. Everyone loses in a recession, even the big boys, and thats ok. If we dont have them we end up with a zombie economy where the bottom 90 percent are struggling while the top 10 percent thrive.
From an economic stand point it makes sense, but it makes the government of the day look bad so the government will do what it needs so the recession doesn't fall on their clock, if it does people loose jobs, loose houses maybe even divorce and loose families, the gov is then blamed and loses the election,this is why they avoid it at all costs
Recession is temporary, hyperinflation is forever. Creating hyperinflation to avoid a recession shows that the politicians will do anything to keep house prices from dropping.
I don't know why the Kook insists we're not in a horrific downturn just because overall GDP is still slightly growing. Clearly we are in a downturn,as he says, in per capita terms. That's what matters. Overall, GDP doesn't mean anything to individuals (unless you're very rich of course). If we are in a per capita recession, we are in a recession period.
Well said mate. You're absolutely correct. Now imagine if state governments were running balanced budgets, not accumulating hundreds of billions in debt which adds to GDP.
And all those additional 'public servants' they employed with borrowed money didn't have jobs.
And imagine we adjusted GDP for the real rate of inflation, not the doctored CPI - now imagine where GDP is. Negative 5% maybe.
Yeah it's just theatrics - word-salad
@@znmcmhn Yes, agreed. It looks like the US is heading towards a massive economic event (a bad one) and there is zero consideration of that.
So the RBA lifts rates to reduce inflation by slowing down the economy, specifically through the private sector but our government continues to spend and drive immigration which is stimulatory and working directly against the RBA mandate while the rest of the population suffers. Great plan.
What is left out is the government has two choices either wage growth occurs proportional to inflation or they flood the job market funded by existing tax payers., It doesn't really work because of a million immigrants recently imported we have just 40,000 of them working so wanna know why we paying through the nose for everything we have 960,000 more people to support.
@@brendanalfo411 They could simply stop spending, get out of the way of the private sector and let the free market find its equilibrium. Will there be pain ? Absolutely because reckless actions have consequences.
@@ricecrash5225 What a load of RUBBISH
A recession loses elections …
Koukolas is a real estate schill.
Know thy enemy
100%
Snake oil men
Real Estate. The only game in town.
Ill tell you one thing, for the people who are struggling to pay their mortgages due to the rate hikes, one interest rate cut will not encourage them to spend money all of a sudden...
Thats why you dont usually get 1
Construction is basically at zero in Sydney. Wouldn't that be the major effect on the poor increase in GDP?
Thoroughly enjoy listening to Stephen. He is a clear, concise thinker that follows the evidence, not led by dogma.
I live in CBR the size of fed public service is ridiculous, the inefficient bureaucracy, not the front liners like nurses and police (which are all state based), we seriously need a conversation about what kind of economy we want as little incentive to aspire to opening any business or venture here.
Good to see the government spruiks finally starting to acknowledge immigration and public sector spending now. Took long enough...
All this pain for for what? Price inflation was always going to come done of its own accord with supply adjustments. The inflation has never been the consequence of demand pressures - how could it be when GDP growing at less than 2% for 2 years. RBA policy has probably inhibited the adjustment to lower inflation rate.
Great & informative content as alway fellas! Keep up the good work. Cheers.
Great work guys. Thoroughly enjoy your commentary. Very informative and helpful!
The US cut 50 points and 100 points in 2020.....Prior to that was 2008. They couldn't cut 50 point during that 16 years because their rate was so low outside of rate hikes.
But interest rates are not high. They are still below historical average.
1000%
Yes, but the government and mortgage debt in Australia is so much greater then 10 or 20 years ago. A 9% mortgage rate today would bankrupt a lot of people and Australia would be in a recession. We are heading for a recession on a 6% mortgage rate as it is…
Would be fine if everyone had a 100k loan.... This country is up to its eyeballs in debt, every point of a percent makes a huge difference compared to 20 years ago and the governments solution to it so to get more ppl into levels of debt they cant repay.
@@sirdekkar ai
It's not the government's fault that people don't think if they can afford it and if they can afford the loan in 10 years if interest goes up, and people have gone mad on house hunting and buying bigger and more expensive programs on TV have fueled that as well
No but prices are at all time hights
Take out immigration, and numbers looks horrible. Thanks Mr. DJ Albo
Not when it comes to government spending it doesn't. Gina Reinhardt recently stated out of a million immigrants recently joining Australia only 40,000 have a job. Tax payers will have to pay for the rest once government budgets and our fiat currency reaches maximums. Which if China related resources go off-line we will have a very different perspective on everything mentioned on this pod cast. We talking possibly a 30-40% crash in the federal budget.
Aussie dollar will be stronger against the green back later this year if the US fed keeps reducing rates and we hold. Probably near 80c. It puts a lot of pressure on commodity sales as they become more expensive for over seas markets. Government coffers will suffer and its going to force the RBA to cut early. Inflation and peoples personal wealth are only parts of the issue. My 2c.
Add to this the government power bill hand outs will help lower the inflation figure on paper.
Inflation will fall to 3 and under. We will then be able to offer one rate cut and Albo will call the election not long after saying how much good work he has done.
If we return to coal for power how much impact would this have on prices and business
Dont understand why earning 5% on my savings is so wrong.
RBA has a real estate hyper-bubble to protect. Their job is to preserve the profitability of the commercial banks, and the borrowing or political needs of the government. The low rate of interest you earn on your savings is of no concern to the RBA.
Exactly, for those of us who are trying to save, maybe for a deposit or something else, need those high interest rates to be able to get anywhere. How are low interest rates good when they kill your savings, increase inflation and increase house prices. It's basically if you don't already own housing then you have no chance to catch up when interest rates are low.
@@Zilron38 exactly right. It's almost as if it's being done by design? 🤔
Great podcast, I've learned a lot.
I’m getting me a board!! Like Steven!! Love it soooo interesting sooo educational thank you for your amazing questions Mark and Stevens ability to break down so many difficult concepts to the rest of us❤️💯
So how come the intrest rates went well over %11 in the 1990's???? How come this can not possibly happen again????
The average Perth mortgage in 1990 was $67,000 today it is around $550,000. Imagine what a 11% interest rate would do to the economy.
Ballooning debt is why interest rates have to stay low. Governments need to keep interest rates low so that they can repay their fiscal debt and keep the economy chugging along.
"Abolishing negative gearing, reforming capital gains tax, and banning foreign buyers from purchasing residential property while encouraging them to invest in commercial property could help balance the housing market. Providing tax incentives for first-home buyers on their mortgage interest payments for the first ten years (similar to the U.S. housing policy) would promote home ownership, reduce demand for rental properties, and lessen the burden on taxpayers in the form of rental assistance. Additionally, 80% of newly released land should be allocated to first-home buyers."
Climate change...?? Alright I'm done with your channel!
Incredible isn’t it…. So over this utter nonsense
So we are just going to ignore the inverted yield curve, un inverting. Righto. I think the fed cut by 50 because they see some deflationary weather on the horizon. That's just my guess.
RBA will be forced to follow the Fed. But our "experts" always try to hold out longer, and commodities give our financial system a little extra cushioning which they will try to use to the maximum.
These guys talking have big gaps in their knowledge. They actually trust what the central bankers say!! Trust the bond market, not the political players: and yes the RBA people are ALL political players.
Even top end restaurants are putting in table service apps that work.
Good restaurants can nearly halve their service employees. The apps are working and are even providing a better experience for the customer. The restaurants will keep the gun servers and punt the hopeless ones . This will grow quickly and and increase unemployment.
Hope you can explain, government spending. Like where the money comes from.
With National gdp and inflation running way higher, aren’t we technically in a recession and have been for some time as the NET growth is very poor and not looking at improving in the near term? Not an Economist, but do understand numbers
We are in a recession already. Particularly down here in Victoria. The RBA has no idea. Just MO
The cost of living is high only because the RBA printed too much money & it devalues the 1 , so $1 = 35c now
CPI increases for Aged Pension Asset Test since 2020 to 2024 have grown $100,000. We can start there. Someone with a house and $1.283million does not need to have access to an aged pensiin when they can live off the interest alone
If interest rates go back down to 2% thats barely 25k a year.
@@ChickityChicken it's not the rate it's the qualifying bar. Home not included + $1.283million, then they get Aged Pension plus, $25k ACAT+$5k State Concessions off rates, car registration etc. Try selling that to people now. Then add onto it houses going up again. Soon people will sit on $1m home + $1.283m assets and then get Aged Pension+ACAT+State Concessions which doesn't include Medicare or other programs. Easily Aged Pensioners will be sitting on $2.5m+ minimum and still get $80k off taxpayers a year. Obscene....has to change.
They need to include the value of PPOR in asset test.
@@ev132-e2h Yep, or we van just continue putting young people wanting a family in tents. Big election coming. Suspect the greedy and selfish will prevail. Almost wanting a war as a reset.
2 rich real estate guys🤑
Interest rates are not high they are below average, In the 80's they got to 17-18%
Silly comparison 17-18% on today's home loans do the math first. My dad lost his house back then due to that period it cost him only 44k to get a brand new house built we are in a different world now.
You must be 65 years old
@@eros7504 me nope 40.
Good cast guys
Could immigration as a driver of economic growth be a trojan horse, its drive seems to act as an anethama for the private sector appeasing them that the gov. has their best interests firmly in sight. I am of mixed heritage and look like i was born in another country but born in australia , point is im starting to understand xenophobia , i feel crowded , whats the real motive ?
Sorry Noob here!! Can someone tell me how to find what the "money Markets" are saying. Is this posted research or a website.
In regards to interest rates, look at the bond market. As for general markets, they are at record highs in the US & OZ. Big business making huge profits thanks to inflation. Now entrenched in their pricing. Sure fuel is dropping, but how is everyones insurance premiums and other input costs.
thanks
What is with these idiot economists who think it's a good idea to have your 'core' cost of living going up another 2.7% annually, on top of how expensive cost of living already is? Why would working class Aussies want to have a government agency (RBA) that deliberately enacts policies to ensure your cost of living keeps going up?
Ask yourself, why dont they target ZERO inflation. Stable prices?
They, these two, are preparing the audience, for Inflation. And at the same time, educating. They can't panic the audience.
It's the silent tax on us
0% inflation is not possible.
Even in a free market prices would go up and down due to supply and demand.
If inflation was in target at 1-2% and wages matched...that would be a perfect would.
Money printing and a debt based economy is the real problem that's robing the middle class.
@@jamesmclean47 well said mate. I'm not suggesting it's possible, just like targeting 2.5% inflation has been a disaster for the RBA the last few years. I'm saying that if we're stuck with an RBA, wouldn't we at least instruct them to attempt to target zero inflation? I'd prefer we abolish the RBA and have a free market in interest rates.
@@mg6407 agreed, but only silent because few understand that inflation is a government tax essentially.
Yes but NZ interest rate still at 5.25% vs Aus 4.35%
If you ratio the interest rates between Aus and NZ. It will be the same as the difference between median house price between same countries....it's all relative
Go on lower interest rates by 0.5%. I’ll get the popcorn ready and watch the hyperinflation bonfire it starts.
This is why I think economy is doing so poorly even though our unemployed figures are very good. The amount of money most jobs pay is not enough to cover essentials and to spend on discretionary items. Say for example 30% of Australians who own their home out right and have investments, they can can only spend so much on restaurants, holidays, electronics, entertainment etc etc... they can spend to enjoy life. That is only 30%, the rest of Australians 70% are borderline broke, you have a shortfall of millions of people who can't spend money on discretionary items because their jobs do not pay enough to have anything left over after housing and essentials, it is certainly the case for me and it is certainly the case for many people I know. The number 1 reason that is causing the poor economy is in fact High House Prices, and High Rental Prices. It is the number 1 reason, period. The secondary reasons are expensive grocery items and expensive energy costs (electricity and petrol) and for quite a few people in Sydney, toll roads. If you just fix housing cost, you will find a lot of people who work, will have extra money left over to actually spend on the economy. This is what happens when the vast majority of wealth goes into house, you don't have anything left for anything else, and since housing doesn't produce anything, you end up broke with a poor economy.
Should of broken down further on unemployment 0.5 over 3 quarters compared to the 12 months prior. Interest rate cute probably march
Let house prices fall. We artificially inflated it
Where is your consumer spending coming from?
So essentially, housing is sucking the life out of the economy.
And if we drop rates, that suction just increases!
Yep, we're stuffed.
Maybe its all the PWC, KMPG staff getting laid off and now working directly for the government.
Yes we do blame the Government when the economy is shit because they always take the credit when it's good.
GREAT
Great and interesting content , but your previous guest wanted rates significantly higher to essentially scorch earth home owners / spending because recessions are ok 😂 economics is all build then burn theory the RBA should just admit they want a recession because that’s their only policy lever
Government spending is a joke.
Vested interest Mark dilutes your credit
I think we need "another recession we have to have". The problem is that we need to "break the back of inflation" as Keating would say. On the one hand we have the RBA saying we need 5% unemployment (foot on the break) and the Labour government ison a spending spree (foot on the acceleorator). This is ridiculous and the federal treasure is proud of himself. Really? If Labour did not go on a spending spree we would be in recession right now. Which is exactly what we need to break inflation. Once inflation comes down the RBA will lower interest rates so the sooner that happens we will ALL be better off. This is a recession we have to have, again!
We are already in a per capita recession. So a recession isn’t as ugly as people think.
@@AussieZeKieLno. There is a difference in that government spending and immigration are keeping businesses afloat. When unemployment jumps to 10% you will know you are in a recession.
@@AussieZeKieL Agree a mild recession of 2 or 3 quarters is exactly what is needed to break inflation.
@@aotk.mp4 A recession is 2 consecutive negative quarters of growth. Per capita recession is not the defination of recession and in the context of a technical recession doesnt mean that much. The RBA is struggling to get unemployment to 5% and that is the target and is needed to slow the economy enough to fix inflation. The RBA would NEVER let unemployment hit 10%. At the same time the RBA does not want to put the brakes on too much and their strategy is to let inflation come down slowly. I do not agree with this strategy because people on the mortage belt are losing their homes. Get it done quickly. Labors spending spree has messed it all up. Why should people with mortgages bare most of the burden of high inflation?
Rba is flying a plane with 1 wing
B.S the housing problem isn't this bad because of mass immigration.. the reproduction rates in the negative...
750 000 people in 1 year isnt bad?
No way Mark, 2027 ... they'll stay up.
Wage increases in the public sector between 2013-2022 averaged 1%pa. It's still miles behind where it should be. These sooks (tradies, business owners, property mogul's) that carry on about public servants and their pay rises, need to take the 3 mill in cash from under their matrasses and start spending!!!
How is trump extreme? Give me specific policy examples? Hope you don’t have Trump derangement syndrome
Boohoooo 😂
Did anyone sense that Mark Bouris was drunk or very tipsey?
The amount of cope from Kouk is always amusing. Everything he ever says is either to support the labor party or real estate. That’s it. Nothing else. Pure bias. Consistently wrong.
These goons wrong again ! The whiteboard piece of the video is always a comedy show....
Aust Government don’t do shit 💩 for the people of Australia 🇦🇺
you just realised this? the joint is more corrupt than Mexico and Russia
Go live in China or North Korea then
Is Bouris drunk, hungover or high?
We’ve been in recession for 12 months real rates are negative
Government is just kicking the can down the road
Rates need to go higher unemployment needs to rise
Gold is warning all of us yield curve is re inverting
The inevitable will come
For christ sake Mark- stop interrupting!!!!!!!!
Stop blaspheming. May God rebuke you.
He has to otherwise old mate keeps dribbling 💩
36:27 you really think they are not cutting that much because there is an election just around the corner?
Nope they're cutting because shit is about to hit the fan. Look at the US 2-Yr yield compared to the Fed Funds rate. Look at Chinese yields crashing. The Bond market is pricing a hard landing. We're screwed. This will be worse than 2008.
@@GF-hg7op hope so. plenty of people will be swimming naked when the tide goes out. Keep buying defence (not defensive) stocks. The main events are just starting. Russia > rest of Europe and then China > US by mid 2027.
Inflation isn’t below 2% with a downwards trajectory. If inflation stabilises at 2.5%, rates will stay the same. They won’t cut rates unless inflation drops significantly below 2%