Well its official..... - Page 2

MO · 02-08-2006, 09:59 PM

I'm biting my tounge......oohhh I would love to post but I don't want to be banned......for those that don't know I'm staunch unionist and left wing.

For those that do know....well ...'I told you so' is getting closer.

olfella · 02-08-2006, 10:01 PM

Quote:

Originally Posted by charles_wif_xf

I could write for hours but if anything seems unclear to you just post back and ask away.

One thing has always worried me. What causes unflation? Wages chasing interest rates or interest rates following wages??
Cheers - Stuffed Eric

olfella · 02-08-2006, 10:03 PM

Quote:

Originally Posted by MO

I'm biting my tounge......oohhh I would love to post but I don't want to be banned......for those that don't know I'm staunch unionist and left wing.

For those that do know....well ...'I told you so' is getting closer.

Let it rip there Mo. You are among friends...

Casper · 02-08-2006, 10:06 PM

If this thread gets political.. it gets SHUT.

MO · 02-08-2006, 10:12 PM

Quote:

Originally Posted by Casper

If this thread gets political.. it gets SHUT.

And thats why I'm biting my tounge....Casper and the rest of the team know me well.

So olfella..I may be amongst friends...but I value my privilege of being a forum member.

Just look up my old posts.

normxb · 02-08-2006, 10:29 PM

Just a question ?

Who took out loans in the last couple of years and allowed a "buffer zone" just in case this sort of thing happened ? Int. rates couldn't stay at that level forever.

Or did you get credit to the max ?

My wife & I rented for 9 yrs to get a descent deposit to buy our first home & borrowed 2/3 the purchase price . That was in 1986 , Int rate 17 1/2% This gave us plenty of equity in the house just in case we had to "refinance" or face higher interest rates ... sometimes you have to crawl before you walk.

Not wanting to get political , wouldn't matter what party is in government.

MickyB · 02-08-2006, 10:30 PM

I guess the government wants us to curb our spending, and decrease the chances of increasing inflation. It does seem like our wages aren't going up in line with other goods however.
Hopefully the rises encourage people to rethink gearing policies and be more conservative with their money.

olfella · 02-08-2006, 10:36 PM

Quote:

Originally Posted by MO

And thats why I'm biting my tounge....Casper and the rest of the team know me well.

So olfella..I may be amongst friends...but I value my privilege of being a forum member.

Just look up my old posts.

Ohh well keep cool and hang loose there Mo...

charles_wif_xf · 02-08-2006, 10:47 PM

Quote:

Originally Posted by olfella

One thing has always worried me. What causes unflation? Wages chasing interest rates or interest rates following wages??
Cheers - Stuffed Eric

In the current economic situation - nothing can cause unflation, or more correctly deflation. In a free market economy, deflation occurs when demand dies off and supply remains high. In this manipulated, fractional reserve system, the best we can hope for is ultra mild inflation.

Quote:

Originally Posted by MO

I'm biting my tounge......oohhh I would love to post but I don't want to be banned......for those that don't know I'm staunch unionist and left wing.

For those that do know....well ...'I told you so' is getting closer.

I agree, let rip. We need discussion, unlike in the mass media, where the government is in cahoots with the media and big business.

MickyB · 02-08-2006, 10:53 PM

Well guys I don't think discussion like this can really occur, I have already a post which I thought only stated factual information deleted, so I suggest we stick to how the rate rise affects us, rather than why it has occurred.

olfella · 02-08-2006, 10:57 PM

Quote:

Originally Posted by charles_wif_xf

In the current economic situation - nothing can cause unflation, or more correctly deflation. In a free market economy, deflation occurs when demand dies off and supply remains high. In this manipulated, fractional reserve system, the best we can hope for is ultra mild inflation.

I agree, let rip. We need discussion, unlike in the mass media, where the government is in cahoots with the media and big business.

Sorry Charles, I will have to learn not to type in the dark... I meant inflation not unflation. And before this thread started I never knew osf such things as stagflation or hyperflation so keep th eknowledge flowing...
Cheers - Eric
PS MO. I kooked up some of your old posts and now know why you must bite your tounge....you are only two months younger than myself... Cheers ol' mate

**ebxr8240** · 02-08-2006, 11:00 PM

I may be wromg but W/A has the inflation. Here in NSW the building industry is at a standstill....Whats the diff between paying for petrol and higher interest? Both make you spend less on other goods...
If we bring in banana's from Malaysia at 70c a kg all our problems will be solved!!!!!!

charles_wif_xf · 02-08-2006, 11:07 PM

Quote:

Originally Posted by olfella

Sorry Charles, I will have to learn not to type in the dark... I meant inflation not unflation. And before this thread started I never knew osf such things as stagflation or hyperflation so keep the knowledge flowing...
Cheers - Eric

No problems Eric. The main cause of inflation is the fact that too much money is being created by the government. More dollars in circulation with nothing to back it up means those notes in your wallet are able to buy that little bit less than a year ago. I don't know how many people are aware of the situation in Zimbabwe, but in that country, people are paying thousands of Zimbabwe dollars for a loaf of bread. They get paid in briefcase sized paychecks. The government is pumping out notes in higher and higher denominations weekly.

Quote:

Originally Posted by MickyB

Well guys I don't think discussion like this can really occur, I have already a post which I thought only stated factual information deleted, so I suggest we stick to how the rate rise affects us, rather than why it has occurred.

Post it again, or PM me and I'll try and include it in my rants, giving credit where credit is due.

MickyB · 02-08-2006, 11:20 PM

Quote:

Originally Posted by charles_wif_xf

No problems Eric. The main cause of inflation is the fact that too much money is being created by the government. More dollars in circulation with nothing to back it up means those notes in your wallet are able to buy that little bit less than a year ago. I don't know how many people are aware of the situation in Zimbabwe, but in that country, people are paying thousands of Zimbabwe dollars for a loaf of bread. They get paid in briefcase sized paychecks. The government is pumping out notes in higher and higher denominations weekly.

Post it again, or PM me and I'll try and include it in my rants, giving credit where credit is due.

It wasn't really important, just answering another member whose post has also been removed about things a certain ex prime minister had done which resulted in capital flight. Not overly relevant anyways, but thanks for the offer.

Falcon Freak · 02-08-2006, 11:23 PM

Quote:

Originally Posted by max

Interest rates up 0.25% again. What do people think?
Did banana and petrol prices do it?

Don't care as I no longer have a mortgage.

FF

1970galaxie · 02-08-2006, 11:34 PM

But what is the interest rate on a loan to buy bananas?
.......Can't afford them anymore!

charles_wif_xf · 02-08-2006, 11:43 PM

Quote:

Originally Posted by 1970galaxie

But what is the interest rate on a loan to buy bananas?
.......Can't afford them anymore!

I bought one this evening. Cost me $2.50.

GTP 320 · 02-08-2006, 11:51 PM

Quote:

Originally Posted by MO

I'm biting my tounge......oohhh I would love to post but I don't want to be banned......for those that don't know I'm staunch unionist and left wing.

For those that do know....well ...'I told you so' is getting closer.

Although it's not the best news,that the interest rates went up a bit,you only have to look back when the interest rates were hovering around 18% and under a Labour Government,need i say more.
Cheers John

TotalDriver · 02-08-2006, 11:53 PM

I'm beginning to wonder now if the higher interest rates will drive the value of Real Estate down as it did in the Early 90's.

Might be a good time to sell now and buy again in a few years when values are at their least?

Food for thought....

**ebxr8240** · 03-08-2006, 12:05 AM

Quote:

Originally Posted by GTP 320

Although it's not the best news,that the interest rates went up a bit,you only have to look back when the interest rates were hovering around 18% and under a Labour Government,need i say more.
Cheers John

When interest rates where 18% most battlers loans where $60 to $100k at most....Interest rates started increasing whn Mr Fraser was P/M....
When I first came here farmers where loosing their farms etc...Way before Mr Keating.....

HLC · 03-08-2006, 12:13 AM

i wish i did economics. i have no idea what this thread is on about.

Interceptor · 03-08-2006, 12:45 AM

dunno who said it..... but "they say the bananas are the reason, but remember..... bananas are yellow, and bent"

kinda sums up a lot of people in the government eh?

JPFS1 · 03-08-2006, 12:46 AM

Interesting discussion.

Do i think it was needed? No.

They claim we are experiencing enough inflating to demand rate rises... i think that is rubbish. Property market has been slowing in most cities, wages haven't been increasing while goods and services have been and they are using petrol prices and the price of banana's as an excuse for inflationary pressures. When you take these 2 out of the equation, inflation is just under 3%.

Property will underperform even further now, people will continue to pay more at the pump and wages will continue to lag, while banana's return to their lower prices as supply increases from recouperating fields.

Sure retail spending has been strong and people are building their homes, but it is the banks that have handed out the easy money over the last few years that have given consumers the power, through debt, to buy. The RBA needed to tighten the banks purse, that would've been sufficient.

I would be very surprised if we see another rate rise this year, but it is expected.

max · 03-08-2006, 10:51 AM

Quote:

Originally Posted by TotalDriver

I'm beginning to wonder now if the higher interest rates will drive the value of Real Estate down as it did in the Early 90's.

Might be a good time to sell now and buy again in a few years when values are at their least?

Food for thought....

I was thinking that. But if there's a stampede to the real estate market place
to be sure there will be a collapse in values.

max · 03-08-2006, 10:54 AM

Quote:

Originally Posted by MO

I'm biting my tounge......oohhh I would love to post but I don't want to be banned......for those that don't know I'm staunch unionist and left wing.

For those that do know....well ...'I told you so' is getting closer.

MO and Olfella, I'd like you guys over for dinner sometime. I got a feeling we
share some basic views!

max · 03-08-2006, 10:57 AM

Quote:

Originally Posted by Casper

If this thread gets political.. it gets SHUT.

Casper do you get RSI from keeping a finger on the kill button?

MO · 03-08-2006, 09:36 PM

Quote:

Originally Posted by max

MO and Olfella, I'd like you guys over for dinner sometime. I got a feeling we
share some basic views!

Now that would be good.

brenx · 03-08-2006, 09:49 PM

Quote:

Originally Posted by normxb

Just a question ?

Who took out loans in the last couple of years and allowed a "buffer zone" just in case this sort of thing happened ? Int. rates couldn't stay at that level forever.

Or did you get credit to the max ?

My wife & I rented for 9 yrs to get a descent deposit to buy our first home & borrowed 2/3 the purchase price . That was in 1986 , Int rate 17 1/2% This gave us plenty of equity in the house just in case we had to "refinance" or face higher interest rates ... sometimes you have to crawl before you walk.

Not wanting to get political , wouldn't matter what party is in government.

Now days the fees on the loan or stamp duties kill any savings you have. I had an $80k deposit for my current home. Most of that was eating with gov't taxes. How am I supposed to put more into a loan when the gov't tax's are ridiculous. GST was supposed to abolish stamp duty on homes. So far Federal and State are getting big $ of stamp duty and GST. It's not right.

How does the rate rise affect me? A little but not enough for me to lose the plot like my Mrs is doing. If you spoke with my Mrs you'd think the world was ending.

MO · 03-08-2006, 09:51 PM

brenx...its only going to get worse.

brenx · 03-08-2006, 09:53 PM

Quote:

Originally Posted by MO

brenx...its only going to get worse.

I wish I'd continued my studies and got into politics. I'd be laughing my a**e off all the way to the bank. I don't view politicians in high regard.