ItalianevaR at 10:38 AM - 27/08/2009
LOOKING FOR A GIRL TO SHARE A 2 BEDROOMS APARTM. IN SYDNEY!... more
weewen at 3:44 PM - 21/05/2009
2 bedroom for rent Carlingford... more
haarvey at 11:38 PM - 20/11/2008
Melbourne suburbs... more
Okay I don't understand economics and neither do I want to... but I have a couple of simple questions about inflation and the interest rate rises which I hope someone with knowledge would answer... Q: Its quite obvious that the interest rate rises have failed to slow the economy and inflation so far... so why is it never discussed in the media about alterative methods of slowing it down? Why penalise the mortgage belt families... its not our fault! On the reverse, the baby boomers who have payed off their property and got rid of the kids are now earned extra $$$ from interest... wouldn't this be a factor in the rise in inflation? They have it great! Buy more and keep on earning extra interest... Could someone please explain why other methods of slowing inflation have not been discussed??
rich, increasing and reducing interest rates is like plunging or withdrawing fuel rods from nuclear reactor cores. It's the last and most broadly acting resort in the case of overheating or underperformance. But as opposed to nuclear reactors, the effect happens in slow motion. Raising interest rates is like turning the rudder on the Titanic. It's still gonna take 100km to make that 15 degree turn. And then there's the problem of turning the rudder back gradually when you think you're gonna made it. Heck you're right it's damn complicated and I'm struggling to understand it. The 'other methods of slowing inflation', there are none. The idea is to keep inflation controlled by making sure markets are supplied, therefore not pushing prices up, and keeping control of the inflation of money and credit supply. I think what we're starting to see now is the beginning of tidal waves of price inflation, resulting from decisions some 38 years ago, when the USA discarded the discipline of the gold standard, in preference for full scale deregulation of credit markets and overprinting of money. The waves are long coming but there is no question they're hitting home now. Debt is the worst thing to have in the coming years because the knuckleheads have unleashed the inflation genie, and they only have interest rate levers to beat it back in.
I know this is controversial but... As a person who has saved money, I am happy to see current measures to slow inflation. I feel sorry for people under morgatage stress, but the inflation caused by escalating property costs, use of credit, etc., devalues the spending power of my money. Rising interest rates means my money gains some value lost otherwise by inflation. That's fair enough isn't it?
If exports to China and India are major factor in making our economy boom right now, why doesn't someone step in and limit production on exports to slow the ecomony? Would this halt inflation?
Sounds like you've stood back from the pig pen antics and watched the revelry, quietly storing your wealth. You are right about the value of your money. And you will be hated by the pigs when the mud dries!
Seems you want to kill the economy! Broadbase tax system and some real reforms would be a great start. Incentives for local industries...yes
sure! deflation is a remedy for inflation! Will you volounteer your job or your income? It's never been politically expedient to fix a problem properely when the horse has bolted and won't be this time round. Eventually interest rates will be spiked to kingdom. In the mean time we'll raise interest rates gradually to pretend we're in control.
As I said in my opening message, I dont understand the Economy I just need someone to explain a bit of it to me. I dont want to kill the Economy, I just want to an alternative a solution to stop inflation and stop my mortgage payments going up! As I said, its not the working families fault for the current situation.. why punish them with rate rises. Give me an alternative solution! Oil companies stop production, why can't the business sector slow down a bit while we are going through this pain?
<<<<Oil companies stop production, why can't the business sector slow down a bit while we are going through this pain? >>>>> Thats a real doosey Rich!! Imagine saying halt everyone!!! No more oil for a while!! Wow no more transport, food stock levels reduce.......people start killing each other, businesses closing down, no work, no money....etc.... Rich raising interest rates is the archaic way of controlling inflation some what artificial in a sense. With the broad GST base, they can afford to reduce fuel taxes and give local industries some incentives. However if ya like spending and clocking up that credit card, you are part of the problem!!!
Lets get things straight. Inflation is not everybodys bad boy. Inflation is a health balancing vector of an active economy. As long as people are getting born, people are dying, growth is happening .. and 6% inflation should not only be possible .. it should be desired. What you do in a rapid inflationary environment is batten down the hatches .. refinance to a point where your debt is manageable, but stop buying little extras.