Australia’s GDP per capita is stagnant. GDP growth is driven by increasing the amount of labour employed. This means stagnant wages since the amount each worker produces isn’t growing
Britain is in the same situation incidentally.
This is a* senior economist*. This is why economists have such a bad name - they are all paid mouthpieces for their employers. No integrity.
There are no real estate anti money laundering laws in Australia
The canary in the mine that is Australia continues to croak…
More of that to come
Read more: afr.com/news/economy/rba-fla … z5CXz0MOrT
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bottom line: The amount people can borrow may drop 30-40%
Holysweet mudderagod! That guy just admitted there aren’t enough Australian government bonds in existence to be able to do QE to the tune of 40% of GDP. Basically he just announced a giant recession. Is he really talking about spending that amount on buying up shitty toxic assets? That would be the same size as the TARP program in the USA … in an economy one twentieth the size! Also we know from bitter experience that it then becomes government policy to reinflate a colossal asset bubble.
This punter in the comments clearly realises the lunacy of it:
The govt will try its best to lock in high prices. They are currently trying:
Massive inward migration
abs.gov.au/ausstats/abs@.nsf … enDocument
note the spin versus what you see when you look into the data. See downloads and open up the excel file, look at permanent & long term migrants for the past 12 months - 788,000+
First home buyer subsidies
businessinsider.com.au/stam … ces-2018-2
Allowing the use of pension funds as a deposit (this is currently additional voluntary contributions but still it reveals the thinking…)
ato.gov.au/Individuals/Supe … er-Scheme/
On the migration issue…its really starting to become a hot topic. Its definitely affecting wage growth and affecting the quality of life in Sydney and Melbourne from the sheer numbers in everything from commuting to schools.
Quite alot of people are fed up with the casualisation of the workforce, the loss of full time jobs, expensive housing, electricity, the never ending demolition of housing to densify and are wondering why more people are being brought in in ever increasing amounts.
Basically there is a net outflow of Australians from NSW but the population is increasing because of migration. The main migrants are from third world countries - read between the lines here - a Sydney that is overcrowded and worse than it has been is still far far better than the third world. It is the perfect example of the race to the bottom. Barista type part time work has exploded while manufacturing gets annihilated
Now that was February, since the February figures were revised, massively, down when the March figures were released this week:
again check out the link and the spin. They are all on about the trend numbers instead of the seasonally adjusted figures. Participation rate fell, full time jobs disappearing being replaced by part time work. Seasonally adjusted:
The skills shortage doesnt exist anymore, not in this economy. Now there is huge slack in the labour force where people with Phds, masters and degrees are cleaning floors because its better than living in the third world. Goodbye any wage increases, the badly needed wage increases needed to pay down the mortgages.
Scratch underneath the surface and you can see the country is badly positioned for a recession or any internal/external shock.
I hope you’re sending some of your savings out of the aus$, or pacific paso as it was called in the past.
^^ That was in 2014, it only accelerated since
I don’t know if you’re serious or joking.
back of an envelope calculation - 1.5 million * 7,000 is not an insignificant portion of GDP abs.gov.au/AUSSTATS/abs@.nsf/mf/1345.0/
*Depending on how it counts it might still count toward GDP just using GDP as a reflection on how much it impacts
Strange, there is very limited ‘new’ Credit being applied to the Irish market right about now.
Wouldn’t suit everyone, but this tiny house has no mortgage and no utility bills for the price of three years’s apartment rent in Sydney:
The tiny house idea is tragic, they live in Australia not Hong Kong
Saw the same thing here during the last “boom” 3 or 4 different people working for US multinationals “living” in camper vans to save on rent
High house prices/rent uber alles