Does anyone understand the economic thinking here
Oct 25th 2006 | 5:10 pm
#31
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Joined: Mar 2005
Posts: 1,728
From: here
Re: Does anyone understand the economic thinking here
Originally Posted by chels
$15.99 a kilo Coles was selling diced lamb for yesterday. Thankfully I was able to pick up some reduced due to being close to sell by date and get a few dollars knocked off. Haven't found a butchers yet that sells noticeably cheaper than that in inner city Sydney.
Highly recommended if you live in Sydney!
Steve
www.butcher2u.com.au
Last edited by stevemich; Oct 25th 2006 at 5:15 pm.
Oct 25th 2006 | 5:17 pm
#32
has lost The Game
Joined: Apr 2005
Posts: 8,735
From: Chippendale, Sydney
Re: Does anyone understand the economic thinking here
Originally Posted by jad n rich
Thought of the wheat one as soon as the first wheat story emerged. Its getting very predicatable.
The good nutritional grainy stone ground type bread is rarely discounted to the extent of the white bread which has little nutritional value and now linked to several cancers. So with the good bread already just a tad under $4 a loaf I already guess it wont be long till we see $5 a loaf and beyond.
Somebody else mentioned why do consumers put up with it, I would like to know this too, take food up 9.9% this quarter, now when the supermarkets announced their billion dollar profits the justificaton for such ludicrous food prices was petrol costs, petrol costs have since fallen, yet not one food item was reduced.
The good nutritional grainy stone ground type bread is rarely discounted to the extent of the white bread which has little nutritional value and now linked to several cancers. So with the good bread already just a tad under $4 a loaf I already guess it wont be long till we see $5 a loaf and beyond.
Somebody else mentioned why do consumers put up with it, I would like to know this too, take food up 9.9% this quarter, now when the supermarkets announced their billion dollar profits the justificaton for such ludicrous food prices was petrol costs, petrol costs have since fallen, yet not one food item was reduced.
I'm off to buy a breadmaker at the weekend I think. I can experiment with some flour and stuff and see how I get on. May save some pennies in the long run...
S
Oct 25th 2006 | 5:28 pm
#33
Lost in BE Cyberspace
Joined: Oct 2005
Posts: 16,623
From: Hill overlooking the SE Melbourne suburbs
Re: Does anyone understand the economic thinking here
Originally Posted by Swerv-o
I'm off to buy a breadmaker at the weekend I think.
S
Oct 25th 2006 | 5:37 pm
#34
has lost The Game
Joined: Apr 2005
Posts: 8,735
From: Chippendale, Sydney
Re: Does anyone understand the economic thinking here
Originally Posted by BadgeIsBack
They're great - drawback is the time and care spent measuring the ingredients(!)
Apparently you can get enough for 4 loaves for about $6. She sets her machine on a timer so that it comes on overnight, and is just finished when she gets up, to the lovely smell of freshly baked bread for breakfast...
Mmmmmm..... Bread.......
S
Oct 25th 2006 | 5:43 pm
#35
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Posts: 1,728
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Re: Does anyone understand the economic thinking here
Originally Posted by Swerv-o
Well, that was what I thought, but my friend says that you can buy a ready mixed packet, with everything pre-measured and mixed. Just add water and Robert is your fathers brother...
Apparently you can get enough for 4 loaves for about $6. She sets her machine on a timer so that it comes on overnight, and is just finished when she gets up, to the lovely smell of freshly baked bread for breakfast...
Mmmmmm..... Bread.......
S
Apparently you can get enough for 4 loaves for about $6. She sets her machine on a timer so that it comes on overnight, and is just finished when she gets up, to the lovely smell of freshly baked bread for breakfast...
Mmmmmm..... Bread.......
S
Oct 25th 2006 | 5:45 pm
#36
has lost The Game
Joined: Apr 2005
Posts: 8,735
From: Chippendale, Sydney
Re: Does anyone understand the economic thinking here
Originally Posted by stevemich
I have heard that it goes off in less than a day as there are no preservatives... so you will have to make a new one every morning, even if you just want one slice of toast!!
S
Oct 25th 2006 | 6:17 pm
#37
Thread Starter
Lost in BE Cyberspace
Joined: Apr 2004
Posts: 10,375
Re: Does anyone understand the economic thinking here
Originally Posted by Swerv-o
the local baker near to me said that he could see some of his better breads going to nearer $10 for a loaf! Some of them are already nearly $5!
S
On the subject, just did a school run, kids needed replacement glue stick, popped into woolworth, woman in front of us had about 12 bananas $32.70 :scared:
Last edited by jad n rich; Oct 25th 2006 at 6:22 pm.
Oct 25th 2006 | 6:19 pm
#38
Mozzie magnet
Joined: Jan 2004
Posts: 1,690
From: Brisbane 'burbs
Re: Does anyone understand the economic thinking here
Originally Posted by BadgeIsBack
Amongst a whole swag of stuff, I think interest rises (monetary policy) is supposed to stop spending which increases inflation and overheats the economy - consumer debt is massive. I might say (and I'm probably wrong) that this is more concern.
Oct 25th 2006 | 6:24 pm
#39
Absinthe Minded
Joined: Jan 2005
Posts: 668
From: At the football
Re: Does anyone understand the economic thinking here
Originally Posted by jad n rich
I think at that stage I will emigrate
On the subject, just did a school run, kids needed replacement glue stick, popped into woolworth, woman in front of us had about 12 bananas $32.70 :scared:
On the subject, just did a school run, kids needed replacement glue stick, popped into woolworth, woman in front of us had about 12 bananas $32.70 :scared:
Oct 25th 2006 | 7:47 pm
#40
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: Does anyone understand the economic thinking here
Interest rates is the only lever than most western economies can use nowadays. If inflation goes up then the bank raises rates, if it goes down the rates go down. I suspect that most Australians are not on the breadline so they are not just spending on essentials.
Oct 25th 2006 | 7:51 pm
#41
Forum Regular
Joined: Mar 2006
Posts: 238
From: Sydney
Re: Does anyone understand the economic thinking here
Originally Posted by BadgeIsBack
They're great - drawback is the time and care spent measuring the ingredients(!)
My breadmaker is gathering dust in the bottom of my cupboard. I too thought it would be cheaper to use it than buying bread but, the other drawback in having hot, steamy, fresh bread , is you tend to cut the slices about an inch thick before you smother them in melting butter..... averages out to be about 8 slices per loaf which is not very economical.
And then theres the drawback to your waistline !!
Oct 25th 2006 | 9:30 pm
#42
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,400
Re: Does anyone understand the economic thinking here
Originally Posted by chels
IMO part of the problem is the willingness of banks to lend money and give people credit cards with high limits. We were recently told by a mortgage broker that there are some banks out there who would be willing to lend us over $1.2m. That's on a joint income of $160k per annum. Madness.
I know I've been banging on about it for 18 months now, but IMO it's still very true - Australia is in one hell of a mess economically so far as debt is concerned.
The property "boom" has been funded by too much lending to too many people who really cannot afford it but are "in" property because they think they will double their money by just sitting back. Well, many have in the past but it's all ending in tears now and will for a sometime to come.
Governments have fuelled the whole debacle by their tax breaks on "investment" property - and the bubble hasn't been helped by we immigrants bringing money in and exascerbating the housing shortages.
The bad debts will filter down through the economy and a lot of ordinary folk will be hurt. It's going to be no pleasure saying "I told you so".
Oct 26th 2006 | 12:43 am
#43
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Joined: May 2003
Posts: 885
From: The Green behind the Gold
Re: Does anyone understand the economic thinking here
What's so wrong with a little inflation for Joe Average? In a year bread goes from $3 to $6, but his wage rise will compensate. However, his new wage lets him pay his home loan twice as fast because his home was bought with last year's money. That's how folks got manageable mortgages in the bad old days of the inflationary 70s and early 80s.
Ohhh ... hang on ... that cost the LENDERS money.
So now we have "good" "stable" economies with low inflation. So your loan which cost 5x your salary will still cost 5x your salary for a long long time. Whenever inflation comes to your aid, the interest rate hikes follow and hold you at the same level.
The banks are happy though, and that's the main thing : )
Ohhh ... hang on ... that cost the LENDERS money.
So now we have "good" "stable" economies with low inflation. So your loan which cost 5x your salary will still cost 5x your salary for a long long time. Whenever inflation comes to your aid, the interest rate hikes follow and hold you at the same level.
The banks are happy though, and that's the main thing : )
Oct 26th 2006 | 12:54 am
#44
Joined: Oct 2005
Posts: 9,066
Re: Does anyone understand the economic thinking here
Originally Posted by jad n rich
Were told to expect another interest rate rise and then another one in februrary, which makes 7 in 2 years.
Latest reasons given in todays australian newpaper, food has soared another 9.9% in the last quarter fruit has soared another 20% in the last quarter. What sort of a mess are we in to have price rises like that :scared:
So then everytime the cost of living soars we are told interest rate rises will make the consumer tighten their belts. Given most of these reasons for the rate rises are essential consumer items, interesting thinking.
Doesnt gel with me, interest rate rises get passes on, prices rise again, creating an outlook of never ending price and interest rate rises.
The countries in its 6th year of drought none of this helps that problem either.
Another aspect is this is already affecting the housing market, yet the government is so out of touch its still saying there is a trade shortage, not in the housing industry theres not ! Plenty of tradies out of work now.
Latest reasons given in todays australian newpaper, food has soared another 9.9% in the last quarter
fruit has soared another 20% in the last quarter. What sort of a mess are we in to have price rises like that :scared: So then everytime the cost of living soars we are told interest rate rises will make the consumer tighten their belts. Given most of these reasons for the rate rises are essential consumer items, interesting thinking.
Doesnt gel with me, interest rate rises get passes on, prices rise again, creating an outlook of never ending price and interest rate rises.
The countries in its 6th year of drought none of this helps that problem either.
Another aspect is this is already affecting the housing market, yet the government is so out of touch its still saying there is a trade shortage, not in the housing industry theres not ! Plenty of tradies out of work now.
I couldn't give a sh*t if Bananas have gone up in price so if I don't eat them my mortgage payment shouldn't go up.
I have planted fruit trees so will get a lot of home grown fruit so my mortgage shouldn't go up.
I have bought an old house not a new estate house so apart from possible health care costs I'm using what the previous owner had so my mortgage shouldn't go up.
Can't figure out how making everyone skint and miserable is supposed to be good for the economy, especially when on the other hand they complain nobody is saving money/extra super for retirement... how the hell can we when we are skint because they keep putting the mortgage up and we need all our money to buy bananas...
.
Oct 26th 2006 | 2:06 am
#45
Lost in BE Cyberspace
Joined: Nov 2003
Posts: 7,949
From: Scotland
Re: Does anyone understand the economic thinking here
Originally Posted by Siren & Brian
Have you not all seen the record profits Coles and woolies have been making....
One of the main reasons why a Reserve Bank (or Monetary Committee of the Bank of England) will increase interest rates is to dampen down inflationary pressures if latest economic stats indicate that this problem is emerging. There are other reasons why rates might move eg exchange rates, housing market booming/sagging, balance of payments problems etc, etc but in this instance one suspects that recent RBA and BofE rate rises and the ones expected in the UK and Australia in the next few months are mainly to dampen down inflationary pressures. As said, in an historical context real interest rates in both countries are extremely low at the present time even with recent rises.
BTW vis a vis (or should that be Visa
) the profits of Coles and Woolies, Tesco recently announced half yearly profits of £1.1 bn and they have soared to 31.4% of the market (UK government definition of monopoly power is in excess of 25% of a market so we await the verdict of the investigation into the power of the supermarkets which has been ongoing for 2 years now).Lest one should think consumer credit/debt is only an antipodean problem:
http://www.creditaction.org.uk/debtstats.htm
OzTennis
