$1.48 to the £ today....this is getting ridiculous
Jan 28th 2012, 11:48 am
#376
Not allowed opinions.
Joined: Nov 2009
Location: Sydney
Posts: 4,565
Re: $1.48 to the £ today....this is getting ridiculous
The joys of it all....
Jan 28th 2012, 11:59 am
#377
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 15,526
Re: $1.48 to the £ today....this is getting ridiculous
Good luck with your trip SH.... what about sat phone connections... as long as your company pays ?
Jan 28th 2012, 1:29 pm
#378
Banned
Joined: Apr 2011
Posts: 280
Re: $1.48 to the £ today....this is getting ridiculous
This is currently happening in the UK, i sincerley hope; i cannot comment as i do not live in Australia currently, but i hope this does not become the case....
QE or Printing Money, dilutes the Pound in your pocket. Inflation may be an indirect tax, but it is very real – the individuals who suffer most from cost of living increases certainly pay a “tax.”
The “tax” is paid when prices rise as the result of a depreciating pound.
Low and middle income families will suffer the most as they struggle to make ends meet while wealth is literally transferred from the middle class to the wealthy.
The transfer of wealth comes as savers and fixed-income families lose purchasing power, large banks benefit, and corporations receive plush contracts from the government .
These companies use the newly printed money before it circulates, while the middle class is forced to accept it at face value later on.
This becomes a huge hidden tax on the middle class, many of whom never object to government spending in hopes that the political promises will be fulfilled and they will receive some of the goodies.
But surprise – it doesn’t happen. The result instead is higher prices for prescription drugs, Utilities, and other necessities.
The moral of the story is that spending is always a tax.
The inflation tax, though hidden, only makes things worse. Taxing, borrowing, and inflating to satisfy wealth transfers from the middle class to the rich in an effort to pay for profligate government spending, can never make a nation wealthier.
But it will make us all poorer.
But you will never read this tale in your Sun newspaper.....
QE or Printing Money, dilutes the Pound in your pocket. Inflation may be an indirect tax, but it is very real – the individuals who suffer most from cost of living increases certainly pay a “tax.”
The “tax” is paid when prices rise as the result of a depreciating pound.
Low and middle income families will suffer the most as they struggle to make ends meet while wealth is literally transferred from the middle class to the wealthy.
The transfer of wealth comes as savers and fixed-income families lose purchasing power, large banks benefit, and corporations receive plush contracts from the government .
These companies use the newly printed money before it circulates, while the middle class is forced to accept it at face value later on.
This becomes a huge hidden tax on the middle class, many of whom never object to government spending in hopes that the political promises will be fulfilled and they will receive some of the goodies.
But surprise – it doesn’t happen. The result instead is higher prices for prescription drugs, Utilities, and other necessities.
The moral of the story is that spending is always a tax.
The inflation tax, though hidden, only makes things worse. Taxing, borrowing, and inflating to satisfy wealth transfers from the middle class to the rich in an effort to pay for profligate government spending, can never make a nation wealthier.
But it will make us all poorer.
But you will never read this tale in your Sun newspaper.....
Jan 28th 2012, 1:35 pm
#379
BE Enthusiast
Joined: Feb 2008
Location: Canberra
Posts: 899
Re: $1.48 to the £ today....this is getting ridiculous
Jan 28th 2012, 2:34 pm
#380
Banned
Joined: Jan 2011
Location: The REAL Utopia.
Posts: 9,910
Re: $1.48 to the £ today....this is getting ridiculous
Jan 28th 2012, 3:00 pm
#381
Banned
Joined: Apr 2011
Posts: 280
Re: $1.48 to the £ today....this is getting ridiculous
Stats like all things bad, roll a dice, push a piece of string, just toss a coin.....I am drunk, so i used to contribute; but no longer, so i will retire and accept my working class poor status..... thankyou and good night...Its been a bang...We have a serious swinging party happening, wish me luck.......Here i go.....Be Happy...I want the Maxi or Allegro......Whoop whoop......
Jan 28th 2012, 3:04 pm
#382
Account Closed
Joined: Jul 2006
Posts: 14,188
Re: $1.48 to the £ today....this is getting ridiculous
Stats like all things bad, roll a dice, push a piece of string, just toss a coin.....I am drunk, so i used to contribute; but no longer, so i will retire and accept my working class poor status..... thankyou and good night...Its been a bang...We have a serious swinging party happening, wish me luck.......Here i go.....Be Happy...I want the Maxi or Allegro......Whoop whoop......
Jan 28th 2012, 3:10 pm
#384
My hovercraft is full of
Joined: Jan 2011
Location: Innaloo
Posts: 507
Re: $1.48 to the £ today....this is getting ridiculous
Blimey
Some sound arguments on here. I applaud you gentlemen.
As a middle man in value adding to mining it frustrates me that we as country can't value and further process the minerals others truly exploit.
Power though is just too dear - $11 a gigajoule comported to about $3 in the US.
Some sound arguments on here. I applaud you gentlemen.
As a middle man in value adding to mining it frustrates me that we as country can't value and further process the minerals others truly exploit.
Power though is just too dear - $11 a gigajoule comported to about $3 in the US.
http://www.smh.com.au/news/business/...353206811.html
Jan 28th 2012, 3:50 pm
#385
Not allowed opinions.
Joined: Nov 2009
Location: Sydney
Posts: 4,565
Re: $1.48 to the £ today....this is getting ridiculous
This is currently happening in the UK, i sincerley hope; i cannot comment as i do not live in Australia currently, but i hope this does not become the case....
QE or Printing Money, dilutes the Pound in your pocket. Inflation may be an indirect tax, but it is very real – the individuals who suffer most from cost of living increases certainly pay a “tax.”
The “tax” is paid when prices rise as the result of a depreciating pound.
Low and middle income families will suffer the most as they struggle to make ends meet while wealth is literally transferred from the middle class to the wealthy.
The transfer of wealth comes as savers and fixed-income families lose purchasing power, large banks benefit, and corporations receive plush contracts from the government .
These companies use the newly printed money before it circulates, while the middle class is forced to accept it at face value later on.
This becomes a huge hidden tax on the middle class, many of whom never object to government spending in hopes that the political promises will be fulfilled and they will receive some of the goodies.
But surprise – it doesn’t happen. The result instead is higher prices for prescription drugs, Utilities, and other necessities.
The moral of the story is that spending is always a tax.
The inflation tax, though hidden, only makes things worse. Taxing, borrowing, and inflating to satisfy wealth transfers from the middle class to the rich in an effort to pay for profligate government spending, can never make a nation wealthier.
But it will make us all poorer.
But you will never read this tale in your Sun newspaper.....
QE or Printing Money, dilutes the Pound in your pocket. Inflation may be an indirect tax, but it is very real – the individuals who suffer most from cost of living increases certainly pay a “tax.”
The “tax” is paid when prices rise as the result of a depreciating pound.
Low and middle income families will suffer the most as they struggle to make ends meet while wealth is literally transferred from the middle class to the wealthy.
The transfer of wealth comes as savers and fixed-income families lose purchasing power, large banks benefit, and corporations receive plush contracts from the government .
These companies use the newly printed money before it circulates, while the middle class is forced to accept it at face value later on.
This becomes a huge hidden tax on the middle class, many of whom never object to government spending in hopes that the political promises will be fulfilled and they will receive some of the goodies.
But surprise – it doesn’t happen. The result instead is higher prices for prescription drugs, Utilities, and other necessities.
The moral of the story is that spending is always a tax.
The inflation tax, though hidden, only makes things worse. Taxing, borrowing, and inflating to satisfy wealth transfers from the middle class to the rich in an effort to pay for profligate government spending, can never make a nation wealthier.
But it will make us all poorer.
But you will never read this tale in your Sun newspaper.....
Of course any decent economist will tell you it is akin to suicide. Savings are trashed, standards of living fall, overseas purchases become expensive, driving inflation etc. It indeed does become a pseudo tax...
Thirty years ago the world laughed at Idi Amin for printing money when he ran out. Now the UK does it.... There is an important lesson there if you look for it.
But the government, as CBL says, wins because it suddenly has a lot more of its new money. The aid money handed out to India (from memory about a billion pounds) is simply printed off. The real cost is to the working man, who finds the quid in his pocket worthless.
Of course inflation is slowing down in the Uk, because QE is on hold. As soon as they start printing again - back up comes the inflation rates...
Jan 28th 2012, 6:05 pm
#386
BE Enthusiast
Joined: Feb 2008
Location: Canberra
Posts: 899
Re: $1.48 to the £ today....this is getting ridiculous
Spot on. QE is a fancy name for devaluing the pound (or any other currency) by printing more of it. Print twice as many pound notes and they are worth half the value. Which means wages are worth half on the global market place, and it keep you competitive in difficult times.
Of course any decent economist will tell you it is akin to suicide. Savings are trashed, standards of living fall, overseas purchases become expensive, driving inflation etc. It indeed does become a pseudo tax...
Thirty years ago the world laughed at Idi Amin for printing money when he ran out. Now the UK does it.... There is an important lesson there if you look for it.
But the government, as CBL says, wins because it suddenly has a lot more of its new money. The aid money handed out to India (from memory about a billion pounds) is simply printed off. The real cost is to the working man, who finds the quid in his pocket worthless.
Of course inflation is slowing down in the Uk, because QE is on hold. As soon as they start printing again - back up comes the inflation rates...
Of course any decent economist will tell you it is akin to suicide. Savings are trashed, standards of living fall, overseas purchases become expensive, driving inflation etc. It indeed does become a pseudo tax...
Thirty years ago the world laughed at Idi Amin for printing money when he ran out. Now the UK does it.... There is an important lesson there if you look for it.
But the government, as CBL says, wins because it suddenly has a lot more of its new money. The aid money handed out to India (from memory about a billion pounds) is simply printed off. The real cost is to the working man, who finds the quid in his pocket worthless.
Of course inflation is slowing down in the Uk, because QE is on hold. As soon as they start printing again - back up comes the inflation rates...
Jan 28th 2012, 6:47 pm
#387
Banned
Joined: Jan 2011
Location: The REAL Utopia.
Posts: 9,910
Re: $1.48 to the £ today....this is getting ridiculous
OK. I'll have to take your word for that 
Stats like all things bad, roll a dice, push a piece of string, just toss a coin.....I am drunk, so i used to contribute; but no longer, so i will retire and accept my working class poor status..... thankyou and good night...Its been a bang...We have a serious swinging party happening, wish me luck.......Here i go.....Be Happy...I want the Maxi or Allegro......Whoop whoop......
Jan 28th 2012, 9:54 pm
#388
You sip .... I glug !!!
Joined: Nov 2003
Location: Over the hill!
Posts: 2,790
Re: $1.48 to the £ today....this is getting ridiculous
But what we are talking about here is safe havens in troubled times. And to be blunt writing an app or providing financial services isn't where the money is heading.
I follow your argument, but it reminds me of sitting in economics class, and I only have to point through the window to show the reality of the situation. Money is flowing into Australia for a number of reasons. Higher interest rates is one, and the safe haven of minerals is another.
Is no good pointing out to me what you think should be happening, or what could be happening, the proof of the pudding is out there for all to see. It's what is happening.
I follow your argument, but it reminds me of sitting in economics class, and I only have to point through the window to show the reality of the situation. Money is flowing into Australia for a number of reasons. Higher interest rates is one, and the safe haven of minerals is another.
Is no good pointing out to me what you think should be happening, or what could be happening, the proof of the pudding is out there for all to see. It's what is happening.
I always think of finance people like weathermen. They tell you what could and should be happening, but until you look out the window yourself you dont know what is really happening.
Jan 28th 2012, 10:13 pm
#389
You sip .... I glug !!!
Joined: Nov 2003
Location: Over the hill!
Posts: 2,790
Re: $1.48 to the £ today....this is getting ridiculous
This is a big gripe I have with Australia. It really grinds my gears that we just dig up raw materials, dump them into a boat and sell them off - A particularly good example being uranium.
Adding value by processing uranium ore into usable fuel not only generates a premium product that can be sold at a higher price, but also helps to develop a supporting knowledge industry and infrastructure that further benefits the country.
But no. We just sell the raw product.
S
Adding value by processing uranium ore into usable fuel not only generates a premium product that can be sold at a higher price, but also helps to develop a supporting knowledge industry and infrastructure that further benefits the country.
But no. We just sell the raw product.
S
But to be fair, with current OZ labour rates and current OZ energy rates, its just not economically feasible to do onshore processing.
If labour rates decrease (unlikely) and energy rates decrease (more unlikely), then maybe onshore processing could happen, but I just dont see it.
Would you (and your family / friends / work collegues) be willing to take a paycut to make onshore processing of minerals a reality? (Cos thats what it needs and then some).
so nice idea but not practical. And on the basis of a bird in the hand etc etc..... we will continue to dig up raw materials, dump them into a boat and sell them off.
Jan 28th 2012, 10:26 pm
#390
You sip .... I glug !!!
Joined: Nov 2003
Location: Over the hill!
Posts: 2,790
Re: $1.48 to the £ today....this is getting ridiculous
Ross Gittings, todays SMH:
http://www.smh.com.au/business/all-h...0127-1qld6.htm
This year we'll see more painful evidence of Australian businesses accepting the new reality: our dollar is likely to stay uncomfortably high for years, even decades.
It has suited a lot of people to believe that just as the resources boom would be a relatively brief affair, so the high dollar it has brought about wouldn't last.
If there were no more to the resources boom than the skyrocketing of world prices for coal and iron ore, that might have been a reasonable expectation. But the extraordinary boom in the construction of new mining facilities makes it a very different story.
The construction boom is likely to run until at least the end of this decade, maybe a lot longer. The pipeline of projects isn't likely to be greatly reduced by any major setback in the world economy. That's particularly because so much of the pipeline is accounted for by the expansion of our capacity to export natural gas. The world's demand for gas is unlikely to diminish.
Again, I rest my case.....
http://www.smh.com.au/business/all-h...0127-1qld6.htm
This year we'll see more painful evidence of Australian businesses accepting the new reality: our dollar is likely to stay uncomfortably high for years, even decades.
It has suited a lot of people to believe that just as the resources boom would be a relatively brief affair, so the high dollar it has brought about wouldn't last.
If there were no more to the resources boom than the skyrocketing of world prices for coal and iron ore, that might have been a reasonable expectation. But the extraordinary boom in the construction of new mining facilities makes it a very different story.
The construction boom is likely to run until at least the end of this decade, maybe a lot longer. The pipeline of projects isn't likely to be greatly reduced by any major setback in the world economy. That's particularly because so much of the pipeline is accounted for by the expansion of our capacity to export natural gas. The world's demand for gas is unlikely to diminish.
Again, I rest my case.....
