ThunderDownUnder

[don]

Go to the midway point, about 12:30, and hear Steven Keen on the Aussie Housing Bubble.

[D-Mack]

Re: ThunderDownUnder

So He Lost Betting Against The Government

Will He Lose The Deflation/Inflation Debate?

[don]

Re: ThunderDownUnder

So He Lost Betting Against The Government

Will He Lose The Deflation/Inflation Debate?

Things run counterclockwise down under

[Down Under]

Re: ThunderDownUnder

Things run counterclockwise down under

I wondered what our problem was

[D-Mack]

Re: ThunderDownUnder

Things run counterclockwise down under

Time runs backwards, back to the good old days?

THE Australian economy has grown at the fastest pace in nearly two years, prompting Treasurer Wayne Swan to say Australia is the "envy of the world".
http://www.theaustralian.com.au/busi...-1225836541522

[thunderdownunder]

Re: ThunderDownUnder

Facts.
Yes - we have avoided a technical recession by throwing money to people and not banks
Yes - the China syndrome of 30% increase in spending is boosting us through exports (India + Korea + Taiwan +Japan are no less important trading partners)
Yes - we have low unemployment because the spending was targeted at consumption - but its still a stimulus which is largely ending.
Yes - the house prices have been artificially been boosted by the first homeowners grant (which was $21,000 with the add-ons) and now is back to $7,000. The Boost was huge because of the gearing potential that $21,000 gave to buyers (and was pocketed by sellers in higher asking prices because of it)
Yes - we had years of surpluses from past asset sell offs and GST windfalls/ capital gains tax takes) so the spending was NOT BORROWED but largely of savings.
But like you it is government spending that is keeping the GDP figure rosy and it can't continue OK (unless you do something really childish and print some - but only desperate, clueless and panicked governments do that)

Stimuluses don't work forever, ask any crack head. The high must by its very nature be followed by a severe low as the "Hit" wears off.

The bad news is ---- We are price takers as an economy so our low is coming when the rest of the Crack dependent economies realize they can't afford or need what we are peddling.
As to Housing - its starting to groan under higher and higher interest rates and just needs the unemployment rate to rise concurrent to produce one very large needle.
In the end however we are Different - we have Kangaroos and Emus and they believe it or not - They can't step backward'