Jobs

That's fine, the RBA will just print money to buy the debt.

 

Much of the developed world is heavy in debt and when you compare us to the OECD we aren't doing too badly at all.

 

How's NZ going with their debt?

They would be a decent comparison for us.

 

If anyone has been following the markets, gold and silver price spikes are keeping the markets honest and accounting for the increase in debt. This is one of the functions of the gold market.

When gold prices increase sharply, it is sometimes called a "silent crash". This is because gold is real money, and if gold is increasing in price, everything else if falling in price when measured in gold.

What we are seeing by the increase in gold price is an asset price crash in real terms.

When you rack up this much debt, you always have to pay the piper. Ultimately, for this property blog, tangible assets like gold, but also like real estate, serve as a hedge against monetary recklessness.

 

Gold is flying!

 

So is AUD ? Dont get it

 

Why the Aussie dollar is soaring despite a looming recession - Small Business Connections

 

Does anyone have any information on what jobs are being lost? My experience from the little bubble I live in is that everyone seems to be going on business as usual. I get that there's been a big hit, but the worst recession since WW2? Where's it coming from?

 

Well think of all the businesses and jobs that have significantly reduced operation:
Airlines
Pub/Bar workers
Hotel/Motel workers
Restaurant/cafe workers
Customer service in retail
Receptionists
Recreational activity operators (diving, air balloon, domestic sport comps, gyms, trainers, etc)
Art and entertainment (galleries, musicians, film/tv production, theatres, artists, entertainers)
University staff cuts due to drop in international students

 

You will get loads of responses no doubt about the hard hit industries. But remember in a recession that starts a snowball effect as less money is swirling the economy. What may seem like a non related hard hit industry does in fact take a hit because of this.

 

Anecdotal and a small sample but in my little bubble of 3 units and 6 neighbours all unrelated and all in completely unrelated industries, 2 out the 6 are relatively unaffected. The others are on Jobkeeper or Jobseeker so I am seeing at first hand, the effects of the crisis.

 

More debt = more fiat currency. Those goods/property that cannot readily increase supply to meet any extra demand will experience inflation.

AUD only appears to be only doing well against the usd. So looks to be more of a usd matter. Their 10 yr bond yield also looks close to falling out the bottom.

It is in the interest of the rich and powerful to keep this monetary system and party going. Lets see what they can conjure up now. I find it strange that FED chairman powell had to go onto 60minutes to sell his money printing. I think he knows that if people/institutions altogether decide to stop buying then no matter how much more money you print, the market can literally go down to zero.. so dont worry keep buying we've got your back

 

It's very hard to envision a V shaped recovery for the US economy given the long-running struggle to stimulate demand and inflation into it since the GFC. While US employment statistics have looked good during much of that time so much job creation has been in low pay + skill service sector jobs, not in the high skilled productivity enhancing areas it needs.

 

Not only the USD as I can confirm to my financial detriment that the AUD has strengthened quite a bit over the last 3 months against the GBP.

 

Hmmm... perhaps you live in a different bubble to me. The tertiary sector of the economy (ie. the service sector) represents ~70% of Australian GDP which you can verify at DFAT website. The importance of services trade to Australia | DFAT

Now, since international & some state/territory borders have been closed, coupled with the various regional isolation requirements, the tertiary sector has been operating with the handbrake on for nearly 6 months now. This has caused significant downturn in the subsequent businesses which has been evidenced by dramatic job cuts/losses by even some of the very big companies, to the point where some have had to significantly curtail operations &/or enter administration. The worst of the affects are not yet fully realised as many businesses have been burning cash reserves, forcing staff to use leave (including unpaid) & collecting government subsidies to avoid demise.... nearly 6 months in now and the outlook is still bleak, let alone the impacts already realised.

I really can’t see from my little bubble how this is business as usual...

 

Not really.

 

Where's the *palmface* emoji?

 

It was a genuine question. I know there are a great people struggling (the stats dont lie), but out of my acquaintances, friends, family, clients and tenants, I'm probably aware of 4-5 people (1%?) who have been affected, and all of them are optimistic about pushing through.

We're also in the best property (sales and rentals) market I've seen locally for years, which is... weird, but I'm not complaining.