1.93's A$ to the Pound!!!
Oct 28th 2009, 8:47 am
#721
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Re: 1.93's A$ to the Pound!!!
is this the whole point of a forum ? no question is stupid. I could ask you questions & I expect you would not know the answer but I would give you the answer if you asked or do you not know the answer to martinluther question ?
Oct 28th 2009, 9:55 am
#722
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Posts: 9,316
Re: 1.93's A$ to the Pound!!!
To me the size of the stimulus is not as important as the size of the deficit. If person A starts with 100 and spends 200 they are still better off than someone who starts with -50 and spends 150. The first person spent more than the second but I'd still say they were better off.
So would you care to enlighten us mortals?
Oct 28th 2009, 10:46 am
#724
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Joined: May 2007
Location: Sydney
Posts: 564
Re: 1.93's A$ to the Pound!!!
There is a point. It's so I can find out why you think the size of the stimulus is important. It may be obvious to you but I can't get a grip on your point unless you use something more tangible than a patronising throwaway.
To me the size of the stimulus is not as important as the size of the deficit. If person A starts with 100 and spends 200 they are still better off than someone who starts with -50 and spends 150. The first person spent more than the second but I'd still say they were better off.
So would you care to enlighten us mortals?
To me the size of the stimulus is not as important as the size of the deficit. If person A starts with 100 and spends 200 they are still better off than someone who starts with -50 and spends 150. The first person spent more than the second but I'd still say they were better off.
So would you care to enlighten us mortals?
For the plan to work it is necessary that people receiving these rebates go out and consume right away. However such a plan is only a minor fix and will end up exacerbating the original problem that caused this recession: debt.
How does a plan help in which the government encourages the people to go further into debt by buying a new television, computer or DVD player? Also, it has encouraged thousands of FHB to enter the property market at a time when interest rates are at EMERGENCY lows with the increased buyers(sorry sellers) grant!
Temporarily there will be a surge in profits and sales, but as soon as monthly payments for product with low down payments and high interest rates are due we will see how the economy does then. My prediction is not too good.
Oct 28th 2009, 10:47 am
#725
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Location: Sydney
Posts: 564
Re: 1.93's A$ to the Pound!!!
If I could understand that I would reply!
Oct 28th 2009, 11:11 am
#726
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Joined: Apr 2007
Posts: 495
Re: 1.93's A$ to the Pound!!!
I noticed The Australian was trying its best not to notice when it said "the Rudd Government's $42 billion fiscal stimulus package - large as it is by international standards"
http://www.theaustralian.news.com.au...8-7583,00.html
http://www.theaustralian.news.com.au...8-7583,00.html
Oct 28th 2009, 11:13 am
#727
Guest
Posts: n/a
Re: 1.93's A$ to the Pound!!!
Australia has tackled the GFC by giving people direct payments.
For the plan to work it is necessary that people receiving these rebates go out and consume right away. However such a plan is only a minor fix and will end up exacerbating the original problem that caused this recession: debt.
How does a plan help in which the government encourages the people to go further into debt by buying a new television, computer or DVD player? Also, it has encouraged thousands of FHB to enter the property market at a time when interest rates are at EMERGENCY lows with the increased buyers(sorry sellers) grant!
Temporarily there will be a surge in profits and sales, but as soon as monthly payments for product with low down payments and high interest rates are due we will see how the economy does then. My prediction is not too good.
For the plan to work it is necessary that people receiving these rebates go out and consume right away. However such a plan is only a minor fix and will end up exacerbating the original problem that caused this recession: debt.
How does a plan help in which the government encourages the people to go further into debt by buying a new television, computer or DVD player? Also, it has encouraged thousands of FHB to enter the property market at a time when interest rates are at EMERGENCY lows with the increased buyers(sorry sellers) grant!
Temporarily there will be a surge in profits and sales, but as soon as monthly payments for product with low down payments and high interest rates are due we will see how the economy does then. My prediction is not too good.
It has also been reported that Australians have been reducing credit card debt. http://www.abc.net.au/news/stories/2...17/2689420.htm
Sep 18, 2009
Reserve Bank statistics show credit cards are being paid off at the fastest rate on record.
Reserve Bank statistics show credit cards are being paid off at the fastest rate on record.
Australia was also very fortunate to have a massive surplus at the beginning of the GFC, which they were able to use to keep us out of trouble.
But also, remember what the cause of the GFC was... Non Performing Housing Loans ? Australia was not really affected by this, when compared to other countries.
Oct 28th 2009, 11:21 am
#728
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Posts: 9,316
Re: 1.93's A$ to the Pound!!!
Australia has tackled the GFC by giving people direct payments.
For the plan to work it is necessary that people receiving these rebates go out and consume right away. However such a plan is only a minor fix and will end up exacerbating the original problem that caused this recession: debt.
How does a plan help in which the government encourages the people to go further into debt by buying a new television, computer or DVD player? Also, it has encouraged thousands of FHB to enter the property market at a time when interest rates are at EMERGENCY lows with the increased buyers(sorry sellers) grant!
Temporarily there will be a surge in profits and sales, but as soon as monthly payments for product with low down payments and high interest rates are due we will see how the economy does then. My prediction is not too good.
For the plan to work it is necessary that people receiving these rebates go out and consume right away. However such a plan is only a minor fix and will end up exacerbating the original problem that caused this recession: debt.
How does a plan help in which the government encourages the people to go further into debt by buying a new television, computer or DVD player? Also, it has encouraged thousands of FHB to enter the property market at a time when interest rates are at EMERGENCY lows with the increased buyers(sorry sellers) grant!
Temporarily there will be a surge in profits and sales, but as soon as monthly payments for product with low down payments and high interest rates are due we will see how the economy does then. My prediction is not too good.
As for the impending doom predictions I suspect they hold as much water as the predictions that the GFC is going to hit Aus sometime later than the rest of the developed world because it takes time for the effects to reach us from the UK and US. (Presumably because it's on a slow boat somewhere on the high seas.)
The biggest danger now is that all the extra money sloshing around will cause inflation. Although that is countered by the strong dollar (bingo - there's the connection to the exchange rate).
What is reassuring from reading the UK and Aus press is that Aus seems to have planned for the worst case senario and things have turned out better than expected whilst the UK has planned for the best case scenario and things are not working as well as they hoped. But then again maybe the Aus press just has it's head in the sand
Oct 28th 2009, 11:23 am
#729
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Re: 1.93's A$ to the Pound!!!
Oct 28th 2009, 11:30 am
#730
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Location: Sydney
Posts: 564
Re: 1.93's A$ to the Pound!!!
But the main affect of the stimulus has been to transfer private debt to public debt. Now, given that Aus started in the black the larger stimulus in Aus has not pushed Aus more into the red than the UK or US or pretty much anyone else apart from Canada.
As for the impending doom predictions I suspect they hold as much water as the predictions that the GFC is going to hit Aus sometime later than the rest of the developed world because it takes time for the effects to reach us from the UK and US. (Presumably because it's on a slow boat somewhere on the high seas.)
The biggest danger now is that all the extra money sloshing around will cause inflation. Although that is countered by the strong dollar (bingo - there's the connection to the exchange rate).
What is reassuring from reading the UK and Aus press is that Aus seems to have planned for the worst case senario and things have turned out better than expected whilst the UK has planned for the best case scenario and things are not working as well as they hoped. But then again maybe the Aus press just has it's head in the sand
As for the impending doom predictions I suspect they hold as much water as the predictions that the GFC is going to hit Aus sometime later than the rest of the developed world because it takes time for the effects to reach us from the UK and US. (Presumably because it's on a slow boat somewhere on the high seas.)
The biggest danger now is that all the extra money sloshing around will cause inflation. Although that is countered by the strong dollar (bingo - there's the connection to the exchange rate).
What is reassuring from reading the UK and Aus press is that Aus seems to have planned for the worst case senario and things have turned out better than expected whilst the UK has planned for the best case scenario and things are not working as well as they hoped. But then again maybe the Aus press just has it's head in the sand
Anyway, it'll all come out in the wash when the slow boat arrives.
Oct 28th 2009, 11:37 am
#731
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Joined: May 2007
Location: Sydney
Posts: 564
Re: 1.93's A$ to the Pound!!!
But if these people used the grants to buy things, then they don't have the debt you mention.
No, but they have artificially stimulated the economy short term and many have used money as down payments.
It has also been reported that Australians have been reducing credit card debt. http://www.abc.net.au/news/stories/2...17/2689420.htm
This is due to people now taking on board what happens when you take on too much credit
Therefore the things you have mentioned may not actually be happening.
Then again, the things the press like us to believe may not be happening
Australia was also very fortunate to have a massive surplus at the beginning of the GFC, which they were able to use to keep us out of trouble.
True, LUCKY. How long can it remain fortunate though?
But also, remember what the cause of the GFC was... Non Performing Housing Loans ? Australia was not really affected by this, when compared to other countries.
It will be when the rising int rates hit the new home owners
http://www.abcdiamond.com/australia/...sing-loans.JPG
No, but they have artificially stimulated the economy short term and many have used money as down payments.
It has also been reported that Australians have been reducing credit card debt. http://www.abc.net.au/news/stories/2...17/2689420.htm
This is due to people now taking on board what happens when you take on too much credit
Therefore the things you have mentioned may not actually be happening.
Then again, the things the press like us to believe may not be happening
Australia was also very fortunate to have a massive surplus at the beginning of the GFC, which they were able to use to keep us out of trouble.
True, LUCKY. How long can it remain fortunate though?
But also, remember what the cause of the GFC was... Non Performing Housing Loans ? Australia was not really affected by this, when compared to other countries.
It will be when the rising int rates hit the new home owners
http://www.abcdiamond.com/australia/...sing-loans.JPG
Oct 28th 2009, 12:01 pm
#732
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Posts: n/a
Re: 1.93's A$ to the Pound!!!
Credit Card Debt Comparisons
The average American household with a credit card held $10,679 in credit card debt at the end of 2008.
http://news.bbc.co.uk/2/hi/americas/8009299.stm
The average UK adult owns nearly 2.5 credit cards and has debts on those approaching £2,300
http://www.bbc.co.uk/northamptonshir..._feature.shtml
The average Australian credit card balance in July 2009 was $3,106
http://www.smh.com.au/business/credi...0917-fssg.html
Oct 28th 2009, 12:08 pm
#733
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: 1.93's A$ to the Pound!!!
You mean that Australians are now being sensible about Debt ?
Credit Card Debt Comparisons
The average American household with a credit card held $10,679 in credit card debt at the end of 2008.
http://news.bbc.co.uk/2/hi/americas/8009299.stm
The average UK adult owns nearly 2.5 credit cards and has debts on those approaching £2,300
http://www.bbc.co.uk/northamptonshir..._feature.shtml
The average Australian credit card balance in July 2009 was $3,106
http://www.smh.com.au/business/credi...0917-fssg.html
Credit Card Debt Comparisons
The average American household with a credit card held $10,679 in credit card debt at the end of 2008.
http://news.bbc.co.uk/2/hi/americas/8009299.stm
The average UK adult owns nearly 2.5 credit cards and has debts on those approaching £2,300
http://www.bbc.co.uk/northamptonshir..._feature.shtml
The average Australian credit card balance in July 2009 was $3,106
http://www.smh.com.au/business/credi...0917-fssg.html
Oct 28th 2009, 12:16 pm
#734
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: 1.93's A$ to the Pound!!!
You mean that Australians are now being sensible about Debt ?
Credit Card Debt Comparisons
The average American household with a credit card held $10,679 in credit card debt at the end of 2008.
http://news.bbc.co.uk/2/hi/americas/8009299.stm
The average UK adult owns nearly 2.5 credit cards and has debts on those approaching £2,300
http://www.bbc.co.uk/northamptonshir..._feature.shtml
The average Australian credit card balance in July 2009 was $3,106
http://www.smh.com.au/business/credi...0917-fssg.html
Credit Card Debt Comparisons
The average American household with a credit card held $10,679 in credit card debt at the end of 2008.
http://news.bbc.co.uk/2/hi/americas/8009299.stm
The average UK adult owns nearly 2.5 credit cards and has debts on those approaching £2,300
http://www.bbc.co.uk/northamptonshir..._feature.shtml
The average Australian credit card balance in July 2009 was $3,106
http://www.smh.com.au/business/credi...0917-fssg.html