Global Inflation

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Surely there’s better ways to bring down inflation than making everyone poor and struggling to pay their debts in a ridiculously quick time?

I dunno maybe investing in Australian manufacturing and automation to bring costs down whilst making us less reliant on the global supply chain? Limiting profit margin & price gouging by large corporations?

Nah making young people who had to borrow ridiculous amounts beyond their means just to even get a sniff of a chance to get into the housing market, now unable to pay their bills, within a matter of months, that’s the best option 🤦‍♂️
 
doggies ftw said:
Surely there’s better ways to bring down inflation than making everyone poor and struggling to pay their debts in a ridiculously quick time?

I dunno maybe investing in Australian manufacturing and automation to bring costs down whilst making us less reliant on the global supply chain? Limiting profit margin & price gouging by large corporations?

Nah making young people who had to borrow ridiculous amounts beyond their means just to even get a sniff of a chance to get into the housing market, now unable to pay their bills, within a matter of months, that’s the best option 🤦‍♂️
Click to expand...

Welcome to the real world with a tad of inflation. Why werent you told ??
 
doggies ftw said:
Nah making young people who had to borrow ridiculous amounts beyond their means just to even get a sniff of a chance to get into the housing market, now unable to pay their bills, within a matter of months, that’s the best option 🤦‍♂️
Click to expand...
Do you mean "young people " who instead of buying a house in a cheap suburb, went out an bought a super duper 4 bedroom 3 bathroom 4 car garage in an upmarket overpriced suburb.?
 

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What inflation is like around the G20

Inflation in the G20 runs from 78.6 per cent to 2.3 per cent.

www.sbs.com.au

Think the economy is bad in Australia? Here’s what inflation looks like around the world

Economies around the world are dealing with the impact of the war in Ukraine and the fallout from the COVID-19 pandemic.
www.sbs.com.au www.sbs.com.au
 
People that have bought at 1% rates and are whinging about them going up are beyond help. Media will probably drive the GFC narrative of the banks being at fault for lending to people who can't afford the rise but surely anybody 40 or above could of told newbie owners what was on offer was not going to last. Don't have to be a finance expert, anybody with life experience should of told you to budget for 5%.
 
The Fed rate probably has to get to 5% before we're back to normal right? All the free many of the past decade-plus has to wash through and we have to return to some kind of historical norm?

I can't find a source but I heard that there is a very strong correlation between "returns" from the past decade or so and the amount of money pumped into the system by governments around the world, which would imply that most of the growth isn't real. Annoying I can't find any source, maybe I dreamt it...
 
sabre_ac said:
The Fed rate probably has to get to 5% before we're back to normal right? All the free many of the past decade-plus has to wash through and we have to return to some kind of historical norm?

I can't find a source but I heard that there is a very strong correlation between "returns" from the past decade or so and the amount of money pumped into the system by governments around the world, which would imply that most of the growth isn't real. Annoying I can't find any source, maybe I dreamt it...
Click to expand...
The influence of money supply on global markets has been pretty mild up until the GFC and QE measures. But yeah, everything post-GFC is very telling.

You might be looking for something similar to this chart:

52332577-1631951615376937.png
 
Gigantic said:
The influence of money supply on global markets has been pretty mild up until the GFC and QE measures. But yeah, everything post-GFC is very telling.

You might be looking for something similar to this chart:

52332577-1631951615376937.png
Click to expand...
That chart is what I was getting at.

That's a fairly concerning data set for all of us collectively, highlighting that we're not innovating/advancing.
 
the media keep talking about the world going into a recession, like it hasn't happened yet.

ITS ALREADY IN A RECESSION.

so sick of people mis representing the word recession!
 
HirdsTheWord said:
the media keep talking about the world going into a recession, like it hasn't happened yet.

ITS ALREADY IN A RECESSION.

so sick of people mis representing the word recession!
Click to expand...
www.investopedia.com

Recession: What Is It and What Causes It

A recession is a significant decline in economic activity that lasts longer than a few months.
www.investopedia.com www.investopedia.com

A recession is a significant, widespread, and prolonged downturn in economic activity. A popular rule of thumb is that two consecutive quarters of decline in gross domestic product (GDP) constitute a recession. Recessions typically produce declines in economic output, consumer demand, and employment.


Economists at the National Bureau of Economic Research (NBER) define a recession as an economic contraction starting at the peak of the expansion that preceded it and ending at the low point of the ensuing downturn.1 The NBER considers nonfarm payrolls, industrial production, and retail sales, among other indicators, in pinpointing the start and end of a U.S. recession.2

its the two consecutive quarters of decline that makes it official for me. Obviously its apparent in 2nd quarter of decline.
 
Kwality said:
its the two consecutive quarters of decline that makes it official for me. Obviously its apparent in 2nd quarter of decline.
Click to expand...
I find this definition too mechanical and I'm not even sure that two-quarters of a minor decline is that damaging to begin with.

For a recession, I'd be looking more at employment and the housing market.
 

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