I guess it’s the financial gift that keeps giving from Scotty from marketing that we’ll all end up paying for.
Tough times are afoot. How much do you think interest rates will go up today?
How High Will Interest Rates Go up Today?
Vote for Pedro on 07/06/2022 - 09:58
Last edited 07/06/2022 - 11:44
Last edited 07/06/2022 - 11:44
Poll Options
- 180.1-0.25%
- 310.26-0.4%
- 750.4-0.5%
- 860.5%+
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Comments
The feds were responsible for 🖨️ 💵.
Dumbos follow sleepy Joe,
Some guy wearing a tie in the largest country is following another suit in the most populous country…..
you follow DeathSantis!
Scomo hand picked the head of RBA. For this reason, the RBA is just as independent as the ABC ;)
Of course, the gentleman agreement was to discuss this pick with Labor. Which LNP did not do.
Not high enough to rekt stonks.
This did not age well.
How much is the XJO down?
They are not going to stop here. They will keep rising.
To the moooooon.
hums savage garden
i see u r also a man of culture
very high
High until people lose their free pandemic money, but just enough to avoid the collapse of the housing market
Saving it wasn't a problem. It seems like spending it was. People just bought stuff they don't need.
Theory if everyone cut back 5% (consumption not even about dollars) then we'll be fine.
you think that's how inflation works lol
Yeah. Too much money chasing too few goods.
Inflation just doesn't grow on trees.
Typically, inflation results from an increase in production costs or an increase in demand for products and services.
@rektrading: You have no idea. Just a troll.
Why Didn't Quantitative Easing Lead to Hyperinflation
This is purely to do with +40% increase in goods consumption with supply chain disruption.
Shipping cost surge raises retail price pressures and inflation risks
5.2% inflation drive by transportation at +13.7% due to fuel, then +6.7% for housing construction and everything else was below 5.2%.
@netjock: Fiat money is behaving like every other 💩 coin ever created.
The more fiat money enters the market the more they go down to the right.
Fiat maxis will blame the devaluing of people's savings on the supply chain, Rona, wars, Godzilla and 👽 when we all know that it's the feds and their fk 💵 🖨️ that is killing them.
@rektrading: Back in your box Troll.
when we all know that it's the feds and their fk 💵 🖨️ that is killing them
It is a lot easier to point the finger at one big fat target. Unfortunately you are wrong as always.
@netjock: I don't have to be right.
People's savings are getting rekt by the endless 💵 🖨️.
People that understand are damp fiat 💵 for hard assets. Those that don't end up hodl bags of devaluing paper or plastic.
Unfortunately you are wrong as always.
But Rekt is right, as always.
Your $ is worthless as soon as the men upstairs press the 💵 🖨️ button.
Say you work your ass off for $100k/yr. 1 press of the button can generate eg. 30% of current circulating cash in a country.
What's your income ratio to infinite money coming from the button? The brain can't even comprehend the numbers.
I lost the number but I think it was 2 or 3 Trillion made out of thin air in past couple years.Look at what happened to Venezula. People literally throwing their worthless $100 bills on the streets, due to hyper-infltion. That's why some Asian/Euro countries have single notes with $100,000 printed on it, that are worth $10.
Look around. Even with all the 💵🖨️, we STILL have run away inflation. Soon we will hit hyper-infl.
Don't for get the AU debt 💣! Pressing the button won't save this shytshow, so they'll just keep kicking the can down the road.Look at what happened to Venezula.
So you are comparing Australia to Venezula. You need to look at the price of petrol first.
You might as well compare Australia to Zimbarbwe.
All you people who some how think it is some numpty high school drop out that pushes the button to print money and inadvertently destroys the monetary system. You people would believe in anything.
If you look at Japan they've printed so much money their debt to GDP is 257% and they haven't gone way of Venezula. I'm not promoted of MMT but you crypto crowd is just jumping at shadows.
@netjock: This is how it all starts…
Little incremental increases here and there, nobody will notice. Then that becomes the norm. Then another bump.
Soon the middle class will be decimated.
Look back on history. Facts & data don't lie.
It's up to you to join the dots my friend…
@Brodo Faggins: Don't waste your time on fiat maxie.
They'll keep pushing save in fiat 💩coin when the CPI is 5.1% and inflation 15.0%.
@Brodo Faggins: Work 9 to 5 and make $200 today.
Keep the savings in the bank for one year and watch it devalue to $85.
@netjock: All you have to do to fix inflation is increase taxes on the middle class. They are the ones with far too much money, vacuuming up investment properties and constantly going on overseas holidays. Use the tax money to pay off debt or build housing for the poor who cannot afford half a million dollar plus loans.
All you have to do to fix inflation is increase taxes on the middle class. They are the ones with far too much money,
.
https://www.smh.com.au/business/the-economy/the-rich-the-com…
The richest tenth of households owns almost half Australia’s private wealth followed by a “comfortable middle" of 30 per cent with 38 per cent, leaving the lowest 60 per cent - who tend to be younger – with 16 per cent of household wealth.
Share of total wealth
Highest wealth
(top 10%) 46%Comfortable middle
(next 30%) 38%Lower wealth
(bottom 60%) 16%
If there was no saving, where does spending money come from?
The economy is bullshit. It is for the benefit few rich people. When everybody is concerned for lives and livelihood, stock prices went up like crazy.
Governments gave free money to big companies directly and to people as well. The money people got is getting collected by companies now because they started spending money like there is no tomorrow.
If there was no saving
Think you read it wrong.
Savings could mean you socked it into your mortgage offset or into your share investment account.
stock prices went up like crazy
In the US crypto and Robinhood share trading volumes went through the roof. The average Robinhood account has a balance of US$5000
Robinhood’s CACs appear to be significantly lower than those of retail brokerages, the value of Robinhood accounts is also lower: the median customer account size is $240 while the average account size is about $5,000, according to Robinhood CEO Vladimir Tenev Link
The money people got is getting collected by companies now because they started spending money like there is no tomorrow.
You know every rags to riches story doesn't involved continuing to live pay check to pay check right?
Like I said savings aren't the problem. It is how people spend it.
Goods spending is +40% since COVID and services spend is -10% deloitte US data it is also the reason why JB HiFi is doing good and city coffee shops are closing down.
Because of this increase in durable / non durable goods spending with supply chain disruption feeds into inflation.
The economy is bullshit
Sure is when people spend money and blame the consequences on everyone else.
15%
aah, the memories
.
My parents told me there were times interest rates at 18-20%. It could go back there.
Some analysts have predicted 3% before the end of the year, not a good time to have big debts, mainly ones with variable interest rates.
Imagine all the people who sold a house in the past year and didn't buy another one. They would be so cashed up right now they wouldn't care about inflation or interest rates. They can buy back a house next year and still have plenty of change left over.
Cash rate is low and house prices haven't dropped by much, not exactly a bargain; rents are higher than mortgages
Rents higher than mortgages? Arbitrage opportunity!
which band does .4% fall in??
i was thinking .255% but that appears to have no band either
which band does .4% fall in??
Fair cop. Mistakes happen.
i was thinking .255% but that appears to have no band either
eye roll
yeh i am being prick.
but .4% - .5% needs to be .4%+ .5%, poll results as they stand are unusable
I agree.
Did someone say The Recession what need to have?
It's The Sun Wot Won It
I really wonder, from an Ozbargainer's point of view, how high the interest rate has to be to be called "too high" for them that they will start having trouble coping. The financial institutions add a small buffer at application time to ensure that people can pay if the rate moves up slightly, but I don't recall that buffer being that much.
and people b.s. too about their expenses. Also if you lose an income your stuffed
buy a simple cheap house and dont try keep up with the jones'
Ozbargainer's point of view, how high the interest rate has to be to be called "too high" for them that they will start having trouble coping.
Need to hand in their membership if they didn't save that money. My mortgage broker being a broker got me an extra $170k on refinance which promptly went back into my mortgage offset. A year later another +$24k added to that number. Everything except for small amount fixed between 1.84% - 2.29% until 2023 - 2025. I didn't get no JobKeeper either, had to slog away WFH locked down.
I am not hoping people get smashed but we're in a world of hurt if people buy goods without thinking of the supply issues that will feed into inflation. I've been on a savings glut since start of the pandemic because this was bound to happen. Last financial crisis the bail outs went to companies which they kept on their books and very little of it made it to the people. You know when you give it to people with no strings attached it just goes straight to spending like K-Rudd's GFC checks that went straight onto big screen TVs. It is just what people do.
50% by years end won't be able to pay their mortgage according to nine news
shouldnt of bit off more than they could chew
For all intensive purposes
Rate rises will be a diamond dozen.
well it is a blessing in the skies
Will nine news recant this at the end of the year when 50% of people don't get forced out of their homes?
nah, the worse they make the news the more people watch, more advertising revenue and people spend to feel better, win win all around lol.
How high it will go today doesn't matter, it is where it ends up.
If it has to hit 6% to knock inflation in the head then we're stuffed.
If it hits 3% for a short time and then comes back down to 2% (RBA rate) then we might be okay.
Don't forget inflation is lack of materials, shipping and cost of fuel (due to Russia-Ukraine), if rates go up to 3% it would send a lot of small services businesses to the wall because they haven't really recovered.
your stuffed then lol
About tree fiddy.
This forum is testament to the Australian education system and the average left wing voter - The Federal Government and RBA are independent of one another
Scott Morrison had no power over the RBA neither does the current PM Albo
It's Dutton's fault
PM = Permanently Misappropriated?
@cashless: Politics isn't supporting your sports team, this ALP government have an impossible task a head of them they will have to make unpopular decisions which will affect the poorest people the most
they wont win another term even if they do a 'good' job in the next 3 years they are going to have to make a lot of people unhappy regardless - they made promises that are 'not possible' to keep without severe consequences but simpletons wont realise that till it is too late
@Trying2SaveABuck: I think there is a good chance that voters will be looking for a "Daddy" Government next election as opposed to a "Mummy" one this time around, I initially thought Dutton was a bad choice to be the opposition leader, but given the likely issues in the next few years, it might not be as bad as I initially thought.
@tryagain: honestly im not the biggest fan of Dutton as a PM but Albo and Jim have made unrealistic and unwise promises pre-election it 'has' got them in the job due to the simpletons not understanding what they are voting for and people simply being fed up with Scomo but when push comes to crunch and all the socialism this government is going to push needs to be 'paid for' when cost of living is pushing 'low and middle income ' earners to the brink this government will fall over itself.
they have 'banged' on about debt which is fair enough but if that 'debt' gets bigger in the next 3-years which i can almost guarantee it will the LNP will simply run ALPs own campaign against them as they wont have the excuse of a pandemic….even though they probably are still feeling the effects of it….
@Trying2SaveABuck: The ALPs budget isn't significantly larger than the Liberal Party's was.
Like most voters you are just spouting stereotypes.
As bad as I expect labor to be, I think it will be time to abandon ship if Dutton looks like sane option.
@ozbjunkie: As in Australia would have to be in truly dire straits for that war mongering bigoted blowhard to look like a viable option. New Zealand is just across the drink or if world has gone that far into the poo perhaps one of the small pacific island nations that no one gives a crap about.
This forum is testament to the Australian education system and the average left wing voter
To be fair, I'm what would be considered 'right wing' on a lot of issues (in so far as the left/right dichotomy makes sense in Australian politics), and the Australian education system failed me just as hard as any lefty. My takes can be as low-IQ as they come and I make no apology for that ever.
This forum is testament to the Australian education system
Maybe you want to look at migration to Turkey? 14% interest rates. 73% inflation. They have a right wing president.
I'm not being disrespectful but are you comparing Australia to Turkey?
im going to echo my point about the testament to the Australian education system….
I'm not being disrespectful but are you comparing Australia to Turkey?
I'm comparing a left wing to a right wing education system. Doesn't look light a right wing education makes a difference.
I think you are being disrespectful to our education system labeling it left wing because it isn't like there is absence of right wing people in Australia.
I think you are being disrespectful to our education system labeling it left wing
You aren't doing yourself any favours here because OP never said this.
because OP never said this.
Scroll up. Trying2SaveABuck said it.
This forum is testament to the Australian education system and the average left wing voter
At least we know our education system doesn't teach people to scroll and comprehend information laid out in a continuously scrolling down and indented thread.
No, they have an islamic fundamentalist dictator at the steering wheel. Quite a difference.
What about America where schools are not allowed to teach evolution (because right wing conservatives don't allow it) and people getting holes shot into them more than there are days in the year?
Also
Turkey is a secular state with no official religion since the constitutional amendment in 1924. To some Turks, Islam is an important part of Turkish life, but the country is very tolerant of all religions, and faiths.
@netjock: Converting a historically significant building, which was earlier turned into a secular museum to create harmony, is now back into a religious building. Not quite a secular move IMO, quite the opposite.
They've changed their name to Türkiye, because of the bird.
Except he controls the economic leavers that drives the performance of our economy. The RBA responds to the status of the economy in line with their stated goals.
Your position is ridiculous.
a war in Europe, a pandemic and 2 major natural disasters in the past 4 years destroyed large parts of the country are all things our government had more or less zero control over.
but regardless the RBA and the Federal Government are independent of one another - the RBA main concern to to ensure inflation remain low/stainable/controllable they dont care who is PM or small minded fools who think ALP is better then LNP or LNP is better then ALP they look at the data becuz the data doesnt lie and right now the data is point to uncontrollable inflation
I guess thats scottys MO that you’ve gobbled up and gargled - “it’s not my fault”
@Vote for Pedro: Scotty isnt the PM mate….. i dont know were you have been but we voted in a new PM a few weeks ago….but i emphesis this he has NO POWER OVER THE reserve banks decision
@Trying2SaveABuck: Let’s be frank here. You have no idea what you are on about. In overly simplistic ways, the government is the biggest borrower of money in the economy and their decisions influence the cost of money.
Yes there are global factors that influence and I am not diminishing those. But ultimately it is the Government that is responsible for setting policy direction.
Take for example gas. The east coast is screwed because of global factors whereas WA mandated a reserve for local consumption. So prices in WA will not suffer the same shock as in NSW. This policy decision of government impacts on cost of living / Inflation which influences the RBAs decision on interest rates in line with the monetary policy.
Even a basic high school level of economics will tell you that much. And yes, I do know its far more complicated and nuanced and many levers impacting inflation. But saying government has no role is simply incorrect.
t’s be frank here. You have no idea what you are on about. In overly simplistic ways, the government is the biggest borrower of money in the economy and their decisions influence the cost of money.
No im going to be FRANK with you,if you cant understand the Federal Government and the RBA are independent of one an other you're just either ignorant or cannot 'read' properly.
You ranting and raving doesnt make that fact any LESS true.
Albo/Scomo CANNOT tell the RBA what to do your fourm is based on this un-educated swipe below
Scotty from marketing that we’ll all end up paying for.
Can you understand the RBA and Government are independent of one an other or not? dead set i got no idea what level of education you have achieved in your life but even i 6 year old understands this basic concept
@Trying2SaveABuck: Yes they are independent. But that’s irrelevant because you’re arguing that the government can’t control interest rates and I’m arguing government policy has a direct impact on the decisions the rba makes on interest rates independently in accordance with their framework.
because you’re arguing that the government can’t control interest rates
yes, this is a fact
The RBA makes decisions based on Data, the government makes decisions based on Votes - The RBA dont care about votes they want low inflation and steady economic growth…..
The government can 'affect' the data via policy but they cannot Tell the RBA what to do matter of fact i'd argue the RBA has more influence on the Governments policy as higher interest rates means Australia debt gets MORE expensive to pay back….
@Trying2SaveABuck: Of course they can’t tell the rba what to do. That’s the premise of having an independent central bank.
However government policy absolutely does have an impact on the economy and the rba responds to the economic signals.
Saying government has no control of interest rates misleading because the government controls the economy and knows the guardrails in place that the rba has in place to maintain stability
@Trying2SaveABuck: Independent on paper, but in practice?
If large Company A had 100% ownership of smaller Company B, and appointed the CEO of Company B, who would reasonably believe them to be independent of each other?
I'm not saying the PM has fully control or even close, but I'd be extremely surprised if the Government didn't have some influence on the RBA's rates decisions.
I'd be extremely surprised if the Government didn't have some influence on the RBA's rates decisions.
Like government stimulus which the central bank has to drain so that it doesn't cause run away inflation. Imagine the government will all these spending options and all you have is interest rates as a counter. It is like having a knife to fit a well equiped army.
@GodsSon23: Welcome to the conversation. Perhaps you’d like to rebut with a coherent discussion point.
ScoMo doesn’t raise the interest rates. It’s not his job!