Globalisation debt & banking
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Gotta agree with AoA on the rip-off in OZ.
Am currently in Saucilito(San Fran) and it just staggers me the gulf between living costs in the US and those in OZ.
Yes, sure the US economy is not flash atm, but it will power its way out of strife. After all the Greenback has and will always be the currency of strength and safety when sh1t turns to trumps.
Brand new cars over here for 0% interest fixed for 3 years; housing loans at 2.95% FIXED FOR 15 YEARS!!!!!!!!! People we are being led a merry dance by our banking sector in OZ. All this crap about international financial pressures and the costs of funding yada yada yada! It's all smoke and mirrors and a complete rip-off.
Fuel(unleaded) in San Fran is $3.99 per USG. Australia @ $1.45CPL.
Food(although it is just crap) is cheap as chips.
Australia is becoming unsustainable, too many dependant on welfare and not enough to support the system. PC in OZ is out of control.
Anyway, I have had my rant, off to Alcatraz.
Am currently in Saucilito(San Fran) and it just staggers me the gulf between living costs in the US and those in OZ.
Yes, sure the US economy is not flash atm, but it will power its way out of strife. After all the Greenback has and will always be the currency of strength and safety when sh1t turns to trumps.
Brand new cars over here for 0% interest fixed for 3 years; housing loans at 2.95% FIXED FOR 15 YEARS!!!!!!!!! People we are being led a merry dance by our banking sector in OZ. All this crap about international financial pressures and the costs of funding yada yada yada! It's all smoke and mirrors and a complete rip-off.
Fuel(unleaded) in San Fran is $3.99 per USG. Australia @ $1.45CPL.
Food(although it is just crap) is cheap as chips.
Australia is becoming unsustainable, too many dependant on welfare and not enough to support the system. PC in OZ is out of control.
Anyway, I have had my rant, off to Alcatraz.
Yes, sure the US economy is not flash atm, but it will power its way out of
strife. After all the Greenback has and will always be the currency of strength
and safety when sh1t turns to trumps.
strife. After all the Greenback has and will always be the currency of strength
and safety when sh1t turns to trumps.
Brand new cars over here for 0% interest fixed for 3 years; housing loans at
2.95% FIXED FOR 15 YEARS!!!!!!!!!
2.95% FIXED FOR 15 YEARS!!!!!!!!!
Low interest rates are signs of an economy in the doldrums. Australia has high interest rates due to the fact people are still able to afford them. If we lowered the rates to the same level borrowing here would go through the roof and CPI with it. A close to 0 percent interest rate on anything shows sales are very poor and companies are doing anything to try and improve cashflow. Fixed for 15 years shows desparation and a very bleak outlook for growth.
If everyone stopped buying houses and cars in Australia to the same level as has happened in the states then we would be seeing the same. Despite the slowdown our jobless rate is still low, compare it to the amount out of work in the US.
Living is cheap in the US compared to our income, compare it to the average income in the US and you will see a very different picture.
Last edited by 43Inches; 5th Jun 2012 at 00:52.
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43 I agree with most of what you say.
However, I DON'T agree with the line being fed to all of us back in Australia by our banking sector that the costs of obtaining funding are increasing and the international monetary pressures are forcing lending rates up. look around the rest of the developed world ie Japan, USA, EU. All these countries and regions are competing in the same international environment that OZ banks are, and interest rates in these countries are not in the same ball park as those in OZ.
Australia has a very obvious 2 speed economy. The retail sector in Australia is very poor; there is virtually no manufacturing sector any longer and lets not talk about the unemployment rate. According to stats, if anyone works more than 6 hrs per week then they are considered gainfully employed. Giver me a break. The unemployment figures published are a con! Governments of any description can spout that crap out all they like, it's all smoke and mirrors.
An interesting article in USA Today talks about the taxes imposed on gasoline. 18.4 cents per USG. Read that figure again. Yes, that's right, per gallon and it hasn't risen for nearly 2 decades. What percentage of our fuel is made up by state and federal imposed taxes on that very same fuel that is pumped at the bowsers? GST on fuel; don't get m started on that one.
As I stated in my previous post, Australia doesn't have enough wage earners to pay for the ever increasing welfare burden. Great place to live but freaking expensive; disproportionately so IMHO.
However, I DON'T agree with the line being fed to all of us back in Australia by our banking sector that the costs of obtaining funding are increasing and the international monetary pressures are forcing lending rates up. look around the rest of the developed world ie Japan, USA, EU. All these countries and regions are competing in the same international environment that OZ banks are, and interest rates in these countries are not in the same ball park as those in OZ.
Australia has a very obvious 2 speed economy. The retail sector in Australia is very poor; there is virtually no manufacturing sector any longer and lets not talk about the unemployment rate. According to stats, if anyone works more than 6 hrs per week then they are considered gainfully employed. Giver me a break. The unemployment figures published are a con! Governments of any description can spout that crap out all they like, it's all smoke and mirrors.
An interesting article in USA Today talks about the taxes imposed on gasoline. 18.4 cents per USG. Read that figure again. Yes, that's right, per gallon and it hasn't risen for nearly 2 decades. What percentage of our fuel is made up by state and federal imposed taxes on that very same fuel that is pumped at the bowsers? GST on fuel; don't get m started on that one.
As I stated in my previous post, Australia doesn't have enough wage earners to pay for the ever increasing welfare burden. Great place to live but freaking expensive; disproportionately so IMHO.
Last edited by Normasars; 5th Jun 2012 at 14:19.
"After all the Greenback has and will always be the currency of strength and safety when sh1t turns to trumps."
No, the global economy is slowly waking up to the fact that greenback hegemony is coming to a close. Our current problems are precisely because the greenback is no longer the safe haven it once was. This represents an enormous change in the way the global economy will move forward. You think gold is expensive right now, you aint seen nuttin yet.
“Am currently in Saucilito(San Fran) and it just staggers me the gulf between living costs in the US and those in OZ.”
Consumables and gas are cheaper in the US but tax is higher than most Australians think, especially instates like CA.
But most importantly, wages in the US are lower than oz.
The average Dash 8 driver in Australia has way more purchasing power and enjoys many more toys than the average Dash 8 pilot in the US for example.
No, the global economy is slowly waking up to the fact that greenback hegemony is coming to a close. Our current problems are precisely because the greenback is no longer the safe haven it once was. This represents an enormous change in the way the global economy will move forward. You think gold is expensive right now, you aint seen nuttin yet.
“Am currently in Saucilito(San Fran) and it just staggers me the gulf between living costs in the US and those in OZ.”
Consumables and gas are cheaper in the US but tax is higher than most Australians think, especially instates like CA.
But most importantly, wages in the US are lower than oz.
The average Dash 8 driver in Australia has way more purchasing power and enjoys many more toys than the average Dash 8 pilot in the US for example.
Last edited by oicur12.again; 5th Jun 2012 at 17:07.
Fuel(unleaded) in San Fran is $3.99 per USG. Australia @ $1.45CPL.
$3.99 per USG is about $1.06 per liter, this does sound cheap compared to $1.45 per liter. This makes fuel seem like its 1.37 times more in Australia or the US price 73% of the Australian price. This is all under the assumption that the price you quoted included state tax, however most listed prices in the US are not inclusive of tax. Food may incur tips and extra additionals as well up to 20%.
Average wage in the US is 50K per year, the average wage in Australia is 70K. Australians are paid 1.4 times better than a US citizen or otherwise a US worker is paid on average 71% of an Australian wage. The avergae pilot in the US is far worse off with general data showing they are paid almost 50% of what we earn for comparable aircraft and thats before chapter 11 cases where pilots are on lowered wages.
In short average fuel prices in the US are 73% of what they are in Australia however they are paid 71% of what we earn meaning that relative to income they are worse off. Who then is actually paying for cheaper fuel?
An average worker in the US is taxed twice, once by federal tax and then state tax (and really a third time by sales tax), there is no real equivelent to Medicare or much in the way of welfare.
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Mate of mine in the US flies regional jets for a major regional affiliate and struggles to pull 30 grand RHS. JFK based, 5 hour drive home where crap housing is barely affordable.
Anyone in oz doing similar?
Nup.
Anyone in oz doing similar?
Nup.
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It's a lot more complicated than simple wage comparisons.
A friend just bought a freestanding, 3 bdr house in an upper-middle suburb of Houston for 87k (the mortgage slavery in oz is worthy of a legion of social studies). Cars are much cheaper. Petrol (all energy), food, clothes, are all undeniably cheaper.
However, typically in the first few years of commencing any job, you get 2 weeks annual leave. How do you value that? Healthcare is off the charts. The average salary is lower (and dramatically lower for certain jobs- such as pilot!).
It's not such a straightforward comparison.
A friend just bought a freestanding, 3 bdr house in an upper-middle suburb of Houston for 87k (the mortgage slavery in oz is worthy of a legion of social studies). Cars are much cheaper. Petrol (all energy), food, clothes, are all undeniably cheaper.
However, typically in the first few years of commencing any job, you get 2 weeks annual leave. How do you value that? Healthcare is off the charts. The average salary is lower (and dramatically lower for certain jobs- such as pilot!).
It's not such a straightforward comparison.
short flights long nights
I can never figure out the difference in say, a BMW M3. It is about $80,000 difference last time I checked. As the wise professer used to say many years ago.."Why is it so?"
Just checked..it seems to be close to $100,000..that makes no sense, at least not to me.
Just checked..it seems to be close to $100,000..that makes no sense, at least not to me.
Last edited by SOPS; 6th Jun 2012 at 10:31.
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I highly encourage you all to get aquainted with Steve Keen. An economics professor here in Australia.
He has just posted online a quick 30 minute discussion to a university group on the state of play now, how we've gotten here and where we're likely to be. He's been pretty accurate so far...
BBC iPlayer - Analysis: Steve Keen: Why Economics Is Bunk
I particularly like his quote
"Capitalism was far more dynamic when engineers dominated back in the 50's, we need to get back there where the financiers are the servents of the engineers, not the masters"
Geez, we could apply this to Aviation in toto
He has just posted online a quick 30 minute discussion to a university group on the state of play now, how we've gotten here and where we're likely to be. He's been pretty accurate so far...
BBC iPlayer - Analysis: Steve Keen: Why Economics Is Bunk
I particularly like his quote
"Capitalism was far more dynamic when engineers dominated back in the 50's, we need to get back there where the financiers are the servents of the engineers, not the masters"
Geez, we could apply this to Aviation in toto
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There are any number of reasons why the Greenback is now arsepaper. I'll start with some.
1: ....
Americas debt to GDP ratio? - 110%
Germanys debt to GDP ratio? - 50%
Australias debt to GDP ratio? - 10%
2. America keeps printing Greenbacks without asset backing. It's quaintly called "Quantative Easing".
This is Banker BS-speak for, "we are turning your dollar into liras, and you have no idea how this is going to affect you in the long-term".
Basically, it means America will end up like Germany in 1923, trying to cope with massive hyperinflation.
3. In America, house prices have tanked by 34% on average since the Great Financial Collapse of 2008, and they're still going DOWN.
Slowly, yes - but still on a downward trend. In other words, put your money into the average piece of U.S. real estate, and see it slowly decline in value.
4. ....
Americas current annual economic growth rate? - 1.9% (IF things go well for the remainder of the calendar year)
Chinas current annual economic growth rate? - 8.5% (down from nearly 10% - oh dear
)
Australias current annual economic growth rate (todays figures) - 4.5%
Did anyone see where, last week, Japan and China have now agreed to trade their currencies on a direct basis? That is, China & Japan will now swap currencies denominated in Yen and Yuan.
Previously to this point, China & Japan only did currency trades of their monies, denominated in US Dollars.
5. The message from this move by China & Japan?
The Greenback, as the world's fallback currency, and the backstop for every economic situation, is now regarded as irrelevant by China & Japan. It no longer has the power it once had. It is history.
It is regarded as having no worthwhile value in the worlds economy in the future, by China & Japan. Both China & Japan see more value in the strength of their own currencies.
For the greedy bankers of Wall St, the skies are filling with chickens coming home to roost. The only problem is - they have turned into vultures while they were out. They can spy a bloated carcass from miles away.
1: ....
Americas debt to GDP ratio? - 110%
Germanys debt to GDP ratio? - 50%
Australias debt to GDP ratio? - 10%
2. America keeps printing Greenbacks without asset backing. It's quaintly called "Quantative Easing".
This is Banker BS-speak for, "we are turning your dollar into liras, and you have no idea how this is going to affect you in the long-term".
Basically, it means America will end up like Germany in 1923, trying to cope with massive hyperinflation.
3. In America, house prices have tanked by 34% on average since the Great Financial Collapse of 2008, and they're still going DOWN.
Slowly, yes - but still on a downward trend. In other words, put your money into the average piece of U.S. real estate, and see it slowly decline in value.
4. ....
Americas current annual economic growth rate? - 1.9% (IF things go well for the remainder of the calendar year)
Chinas current annual economic growth rate? - 8.5% (down from nearly 10% - oh dear
)Australias current annual economic growth rate (todays figures) - 4.5%
Did anyone see where, last week, Japan and China have now agreed to trade their currencies on a direct basis? That is, China & Japan will now swap currencies denominated in Yen and Yuan.
Previously to this point, China & Japan only did currency trades of their monies, denominated in US Dollars.
5. The message from this move by China & Japan?
The Greenback, as the world's fallback currency, and the backstop for every economic situation, is now regarded as irrelevant by China & Japan. It no longer has the power it once had. It is history.
It is regarded as having no worthwhile value in the worlds economy in the future, by China & Japan. Both China & Japan see more value in the strength of their own currencies.
For the greedy bankers of Wall St, the skies are filling with chickens coming home to roost. The only problem is - they have turned into vultures while they were out. They can spy a bloated carcass from miles away.
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Loads of great info here . Someone mentioned it's a negative we are giving too much aid to Afghanistan and other places when people here do it tough .
Most of us here have travelled . And most of us know even the poorest most struggling Australians live like kings compared to "a lot " of the rest of the world . Things are not as good as they could be on almost all fronts . But this thread is called globalisation etc etc . When we all look honestly at the big picture we are all very very lucky .
Lots of room for improvement . Discussion and debate here and other places can help improve things . How lucky are we though .... Think Syria for starters, loads of other less extreme examples also
Most of us here have travelled . And most of us know even the poorest most struggling Australians live like kings compared to "a lot " of the rest of the world . Things are not as good as they could be on almost all fronts . But this thread is called globalisation etc etc . When we all look honestly at the big picture we are all very very lucky .
Lots of room for improvement . Discussion and debate here and other places can help improve things . How lucky are we though .... Think Syria for starters, loads of other less extreme examples also
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Australia giving aid to afghanistan?
You mean australia using aid as a tool of persausion.
No country EVER simply gives away aid.
It is ALWAYS used as an instrument of control.
It turns out afghanistan is the Saudi Arabia of lithium.
As our future lies in lithium powered cars.
Coincidence anybody?
You mean australia using aid as a tool of persausion.
No country EVER simply gives away aid.
It is ALWAYS used as an instrument of control.
It turns out afghanistan is the Saudi Arabia of lithium.
As our future lies in lithium powered cars.
Coincidence anybody?
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Its wonderfull how the world operates.
I clicked on the steven keen link where he explains the sad state of affairs of the western economy and whats the first thing to pop up on bbc iplayer - Queens jubilee celebration.
The ruling elite of our so called society have managed to divert our attention from the real issues to the non issues for centuries.
And it continues today.
Economic decay......... Oooh look, the queen on a horse.
Hilarious.
I clicked on the steven keen link where he explains the sad state of affairs of the western economy and whats the first thing to pop up on bbc iplayer - Queens jubilee celebration.
The ruling elite of our so called society have managed to divert our attention from the real issues to the non issues for centuries.
And it continues today.
Economic decay......... Oooh look, the queen on a horse.
Hilarious.
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The US Labor Market Is In A Full-Blown Depression
From David Rosenberg:
One Sick Labor Market
There were so many disturbing elements to the May jobs data that we're not sure we can do justice to the litany of disappointments (with some help from our friends at the Investor's Business Daily):
From David Rosenberg:
One Sick Labor Market
There were so many disturbing elements to the May jobs data that we're not sure we can do justice to the litany of disappointments (with some help from our friends at the Investor's Business Daily):
- The share of long-term unemployment is at its highest level since the Great Depression (42%).
- Fully 54% of college degree graduates under the age of 25 are either unemployed or underemployed.
- 45 million Americans are on food stamps — one in seven residents.
- 47% of Americans are on some form of government assistance.
- The employment-to-population ratio for 25-54 year olds is now 75.7%, lower than it was when the recession supposedly ended in June 2009.
- The number of people not in the labour force has swelled eight million since the recession ended; absent that effect, the unemployment rate would be 12% right now (about the same as President Obama's election chances would be).
- The number of people confident enough to leave their jobs fell 11% in May
- for the second month in a row to 891k, the lowest since November 2010.
- The ranks of the unemployed who have been looking fruitlessly for work for at least 27 weeks jumped 310k in May, the sharpest increase since May 2011.
- The unemployment rate for males aged 16-19 is 27% and for males between 20 and 24 it is 13%. Draw your own conclusions from a social (in)stability standpoint.
- One in seven Americans are either unemployed or underemployed.
- Only one in six of the youth are working full-time and three-in-five are living with their folks or another relative (as per the NYT).
- A mere 16% of the 2009-2011 graduating class has found full-time work, while 22% are working part-time. Even those hired from 2006-08, just 23% are working full-time.
Yet the US sharemarket is not far from its all time high, while the Australian sharemarket at around 4100 [XAO] is less than 2/3 of its 2007 high of 6779, and much closer to the GFC low of 3297 in 2009 than the 'irrational exuberence' high.
We have a resources boom, relatively low unemployment [allegedly] and a growing economy [allegedly]. Which market is mispriced, and why?
[If you think it is connected to the high Aussie dollar, then you'd have to expect the market to rise when the Aussie falls, and that doesn't happen either].
We have a resources boom, relatively low unemployment [allegedly] and a growing economy [allegedly]. Which market is mispriced, and why?
[If you think it is connected to the high Aussie dollar, then you'd have to expect the market to rise when the Aussie falls, and that doesn't happen either].
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