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RBA Keeps Cash Rate Unchanged At 4.25% On Expectations Of 25 bps Cut, AUD Spikes
When all else fails, pretend it's all good. Like what Australia did, following the just released announcement by the RBA that it is keeping the cash rate unchanged at 4.25% on expectations of a 25 bps rate cut. Which begs the question: is China re-exporting the lagging US inflation it imported over 2011? So it appears to Glenn Stevens, who just said that "Commodity prices declined for some months to be noticeably off their peaks, but over the past couple of months have risen somewhat and remain at quite high levels." Or maybe they are not pretending and inflation is still alive and very much real? It also means that Chinese inflation continues to be far higher than what is represented, but we probably will just take the PBoC's word for that. Or not, and wonder: did the RBA just catch the PBOC lying about its subdued inflation? And if that is the case, does anyone really wonder why that very elusive RRR-cut is coming with the same certainty as the Greek creditor deal? Either way, the AUDJPY spikes by 80 pips on the news, however briefly, and if the traditional linkage between the AUDJPY and the market is preserved, it should have a favorable impact on risk as it means at least one hotbed of inflation remains. On the other hand, it also means that Chinese easing is a long way off... and in a market defined solely by hopes for central bank intervention this is not good. And amusingly, just as we write this, Bloomberg release a note that the PBOC is draining funds: "China’s money market rates rose after PBOC resumed fund drain via a repo operation, showing it remained cautious toward policy easing." Translation: "Hopes for a near-term RRR cut could be dashed, Credit Agricole CIB strategist Frances Cheung writes in note to clients." Oops. Furthermore, the PBOC did 26 billion yuan in repos, meaning it is set to conduct a net liquidity withdrawal for this week according to Credit Agricole. Withrawing liquidity when the market expects RRR cuts? Fughetaboutit. (and reread the Grice piece on why only idiots define inflation by the CPI or the PCE).
Official Statement from the RBA
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.25 per cent.
Information becoming available since the December meeting confirms that economic conditions in Europe were weakening late last year, with risks still skewed to the downside. Reflecting this, most forecasters have lowered their forecasts for world GDP growth this year to a below trend pace. That said, recent data from the United States suggest a continuing moderate expansion after a soft patch in mid 2011. Growth in China has moderated as was intended, but on most indicators remained quite robust through the second half of last year. Conditions around other parts of Asia have softened. Commodity prices declined for some months to be noticeably off their peaks, but over the past couple of months have risen somewhat and remain at quite high levels.
The acute financial pressures on banks in Europe were alleviated considerably late in 2011 by the actions of policymakers. Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made. Financial market sentiment, though remaining skittish, has generally improved since early December. Share markets have risen and term funding markets have re-opened, including for Australian banks, albeit at increased cost compared with the situation prevailing in mid 2011.
Information on the Australian economy continues to suggest growth close to trend, with differences between sectors. Labour market conditions softened during 2011 and the unemployment rate increased slightly in mid year, though it has been steady over recent months. CPI inflation has declined as expected, as the large rises in food prices resulting from the floods a year ago have been unwinding. Year-ended CPI inflation will fall further over the next quarter or two. In underlying terms, inflation is around 2½ per cent. Over the coming one to two years, and abstracting from the effects of the carbon price, the Bank expects inflation to be in the 2–3 per cent range.
Credit growth remains modest, though there has been a slight increase in demand for credit by businesses. Housing prices showed some sign of stabilising at the end of 2011, after having declined for most of the year. The exchange rate has risen further, even though the terms of trade have started to decline. This is largely a reflection of a decline in the euro against all currencies. Nonetheless, the Australian dollar in trade-weighted terms is somewhat higher than the Bank had previously assumed.
At today's meeting, the Board noted that interest rates for borrowers have declined to be close to their medium-term average, as a result of the actions at the Board's previous two meetings. With growth expected to be close to trend and inflation close to target, the Board judged that the setting of monetary policy was appropriate for the moment. Should demand conditions weaken materially, the inflation outlook would provide scope for easier monetary policy. The Board will continue to monitor information on economic and financial conditions and adjust the cash rate as necessary to foster sustainable growth and low inflation.
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The Monetary Policy Board in Australia sounds a lot like the Fed in the U.S.
Central Banks must have a public statement handbook that they all use.
Cabal of Kleptocractic Crony Counterfeiters
Works for me. Need another 6 months to accumulate all the gold i think i need, and a high Aus dollar makes that easier. Plus when everything turns to shit, gold will shoot up and the Aussie dollar will shoot down, potentially doubling my profits. Should also coincide with a real estate crash, so the house i sold in 2010 for 300 ounces I should be able to buy back for 50 ounces.
Fuck I hope i'm as smart as I think i am.
Same here mate, this is a one shot deal kinda thing. Real estate market is in the part where speculators are trying to hold on as long as they can. Once they start having to sell the house prices should drop further.
"Central Banks must have a public statement handbook that they all use"
Nah, they don't want a written record..
They do have little policy get-togethers though..
http://www.youtube.com/watch?v=H5YI6q90DAI
PMSL!
Let's just hope those Labor assholes don't try and save the negatively geared home owners. They need to burn.
Actually that's not right, the RBA chief Glen Stevens is really quite savvy and knows that ZIRP is destructive. He also knows the Big Four Aussie banks will soon be downgraded and that will take some heat off the AUD. The Big Four still get much too much funding from offshore and we're soon to see a Lehman 2-style global liquidity (and solvency) crunch. Stevens wants to keep his powder dry so he can ease when he really needs it. Smart IMO.
I tend to agree with your assessment... the RBA probably has the most rational monetary policy in the developed world. Stevens is saving this rate cut for a really rainy day... and it will likely come in handy when commodites start to really tank. Global liquidity crunches are a real bitch... especially when one runs out of ammo.
Right now, the Fed, ECB, and BOJ are all doing the dirty work to help Australia's raw materials-based economy. since most of this stuff is priced in worthless $, anyway.
Agree. Glen Steven's knows his shizzle. One of the worlds most prudent (and highly paid bling bling) central bankers.
Anyone who wasn't an economist for a major bank, and had any idea about the macro economic environment knew that the most likely outcome was a hold.
Seems pretty obivous to me that he's waiting to see the outcome in Europe. If they print he was right to hold, if they default, he was right to hold (dry powder). Hows that for a simple risk matrix?
Media just love to talk about rate cuts. And most pundits are clowns.
I think Aussie ZH'ers should get together and drown a few dozen beers. Anybody agrees, let me know.
If you are willing to meet in Colorado USA... I'll buy you all a round.
I think I might come out ahead on that deal, though.
Hmmm... I think it might be a quite different story if I left an open bar tab. You Aussies have a reputation...
though it added some bumps into my aud shorts, gotta give credit where's due... The move was wise.
many times ZH ain't different than MSM; ZIRP is bad, but keeping a decent interest rate is also bad... facepalm...
and one more thing - it's not RBA's job to prevent a Dutch disease. They can prevent inflation up to a point, but that's that. If the AUD gov doesn't save good chunks of the new found wealth(a la norway)... it's not like the RBA should take up the fiscal policy. And all that money will obviously go somewhere(if only in a higher aud - regardless, long term, it's still damaging their econ.)
all the World's Central Banks (or Hedge-funds) take their lead from the US FED
the Game is called: bugger thy Neighbour while his wife turns a blind eye
come out to Australia and I show you some time
we have very low 3.1% inflation rate or CPI even lower according to the RBA.
that is of course excluding Fuel and other volatile extraordinary Items.
If you include our Fuel and Carbon Tax and Energy-costs you would see an increase of at least 20% in CPI over the last 12 month. We have to buy Tapis crude out here, last time I looked US 110 or more, a gallon of fuel costs about US$6 and my Natural Gas and Water and Energy costs have increased by at least 44% in 2011, and I did all the calculations to work out my own budget, because I don't want to die on the Street and lose my home. Apart from that I have become a vegetarian, have lost 20 kg over 2011 and cut down on all my living expenses to the minimum.I used to fly aerobatic planes a lot, was in the middle to do my commercial pilots check outs...all that I had to cut down to minimum hours.
I just can't afford the fuel anymore and had to cut down on so many good things..
I can tell you all about Austerity if you got 5 hours to spare...
but the RBA tells me, everything is fine...
Glen Stevens is Bernankes little piggy bank...
following the central bankers masters plan,
bugger the World, at 4.25 % and the AUD strong
because deflation is stiiiiiiiiill a threat!
AND THERE IS NO inflation !!!!!!
bugger off Federal Central Planing Hedge-Fund !
wr;)
can't work out if this is sarc or not? Are you really bitching about austerity cause you can't fly your plane as much any more?
Plus i paid 12c/kwh in 2000. Now i pay 18.5c/kwh. Bad but not that bad.
They tried this same trick back in 2008. They were one of the first countries to increase interest rates to a reasonable rate again, even though it could not afford to. They are pretending that everything is all right, but .gov doesn't realise that we don't actually produce ANYTHING (mining is not producing, it is stealing). Most manufacturing is heading elsewhere, businesses aren't investing, jobs are disappearing in the private sector (public sector growing).
We are experiencing huge inflation, but there are certain players manipulating CPI. Look at Coles & WW, now they are targeting fresh veggies by having a market war. Last year it was a price war on Milk & Bread. They squeezing the suppliers, but .gov doesn't care as long as it reduces CPI. Unfortunately CPI doesn't count quality/import vs. local goods. We are eating worse than our grandparents.
Australia is huge. Most of Europe fits in the country. All well and good, but how much oil is needed to service a country this big without proper train networks etc.
Where is the future?
Inflation with negative shipping rates is going to confuse the Keynsians to no end!
(edited)
lol
Why is no one talking about the inverted AU yield curve? This can not be good for Australia?
http://www.bloomberg.com/markets/rates-bonds/government-bonds/australia/
Or maybe I am seeing something and misreading it?
Australia could begin to actually buy some imports from the USA if this keeps up, I would like to see that.
However you still can't purchase a new F series FORD pickup through a dealer because of differing emission standards.????
And supposedly the US and Australia have a free trade agreement!
Some free trade hmmm....
Australia could begin to actually buy some imports from the USA if this keeps up...
what do you think Australia has been doing over the last decade ?
after all, Australia is still a british colony in the commonwealth...
they got to do their bit...buying strike-fighters and submarines and all that
Boeing for Qantas and OTIS lifts for our buildings...
We are buying Apples like theres no tomorrow.
however 22 million Australians can only consume so much...
the high cost of fuel is a major problem!
wr;)
"buying strike-fighters"
you mean the imagainary non existant strike fighters? Just as well we pay for them with imaginary money.
At present rate they will be 6 to 7 years late in FOC, that's if they are not cancelled altogether due to lack of $$$ (i.e. by the Pentagon/US). So expect another 24 Super Hornets fairly soon ... and maybe 48 to 72 new off-the-shelf Eurofighters with new versions of Meteor and ASRAAM by 2020. And we had a French fighter before the A/B Hornets. i.e. it would be a Spanish/German/Swedish Navy, plus a US/Brit/Spanish/German air force, and a US/NATO equipped Army plus a lot of Israeli kit mixed-in. Strangely almost nothing Japanese or South Korean. Diversified 'investments' are a good idea, saves being held captive to US policy demands. India does ok with that approach, so do Saudis and Turks.
It would be a major change in direction and capability development if RAAF decided to delay the purchase of F-35 until 2025, but this really could happen, at this point. It may be worth waiting for it to mature in service and buy a more developed variant after the F/A-18F reaches mid-life. The USN plans to keep them on deck (thinks they will still be able to cut it) until at least 2030. And it would be a good idea to buy an F-35 that's actually optimised and maximised to whack whatever the new Russian and Chinese aircraft present.
Frankly, an updated F-22E would not be out of the question in that case. Why not? The US will be happy (if not desperate) to reopen the assembly lines, and sell them to us ... in a few years time.
--
RBA? <yawn> ... predictable ... if there is a downturn/recession threatening, rates will go down fast, AUD will plunge (for a few months), Govt will stimulate (a few times), assets prices will be surprisingly supported, and 2013 will be another startling 'boom' year with mega foreign investment, and larger and larger record exports. I wish I could be more gloomy, but that's what's going to happen. The deflating of the RE bubble will be fairly gradual and comparatively gentle, as deficits blow-out, for 10 to 20 years or so. Expect steady rises in resources taxation.
Why does Australia need jet fighters? Or a large navy? To attack what country exactly?Indonesia or PNG?
Or to defend from what invasion? Last I checked, anyone wanting to invade Australia had to cross a body of water, so a radar system and a series of missile defense systems / torpedoes will do the job just fine.
Silly military people spending money the government does not have on toys Australia does not need.
It is still a helluva nice place though.
I'll trust the military pros to make that call. Because any way you slice it, the govt can and does order them to do stuff, so they have to be able to do it, so they develop the means to do what they think the Govt will ask of them, and what another Govt may order its forces to do to them.
People are easily corrupted, even inevitably corrupted/perverted, at least to some extent, and that's where benevolent notions and hopes of peace tend to fall apart.
Re: a 'need' for jet fighters and a navy ... look what happened to the Abos mate ... that's the outcome.
In other news, the Romanian government just collapsed due to austerity.
http://news.yahoo.com/romanias-government-collapses-protests-151141275.html
Who's next?
So basically, sell silver and gold?
kinda' on topic, about pretending
Truth, lies and Afghanistan
http://armedforcesjournal.com/2012/02/8904030
US paints false picture of Afghan war: officer
http://www.breitbart.com/article.php?id=CNG.956cc047c755305c8ad4580183554bcc.941&show_article=1
courtesy Drudge
Um Australia. Shipping rates have collapsed, also the commodity spikes came from fudged PMIs that started on Jan 1st from our beloved China stat department. Nasty and confused market.
ASX200 was destroyed. Stocks elsewhere an inflation hedge? Don't bet on it. Money on the RBA cuts in a week or so...yes Greece and the liquidation trade looms boocoo style
Oz banks cants pass on anymore rate cuts.
Not cutting today supports lending bizzarely enough.
Furthermore, it insulates their consumption economy from inflation.
But it'll end up the same as before, they will have to slash rates eventually.
Those Mongolian mines cant start up fast enough.
China must be sick of being gouged by the bogans.
The oz economy is so unbalanced its ridiculous, and expectations for a mining boom will be found sorely lacking.
All the employment and investment gains are upfront, once thats over, they'll be selling their dirt at cost due to the competition.
Now if there was only a way to short Oz without the stupid carry.
The tone of this article seems to be critical of the RBA for not cutting. At the same time ZIRP by the Fed is widely criticized. Am I misunderstanding the tone of this article? If so I apologize.
Good point. It seems to me it's mostly about the cluelessness of CBs. Many versions of what's "best" yet noone seems to have a clue.
It's damned if you do, damned if you don't around here.
And the talkingheads on TV keep saying everything in Euope and US is ok, 'Buy into equities; support your economies.' I guess their right. I going to do that, first thing tomorrow.
I am a supporter of PM miners!
" The Board will continue to monitor information on economic and financial conditions and adjust the cash rate as necessary to foster sustainable growth and low inflation."
Well, Glenn and his pals seem to have everything under control. The tone of the statement is very reassuring to us aussies - comforting to know we're all safe and sound in our little ship HMAS 'stralia. So if I've got this right it's quite simple - the cash rate is the rudder and all Glenn has to do is twitch it one way or the other to keep the bows to the waves? How does this work with multiple tsunamis rolling on the horizon? We're at that fascinating stage where the water in the shallows is being sucked out into the deep, prior to returning with serious interest (ie. not 4.25%!) - whether it's going to come as a slow, relentless swell or as an overnight flash flood, we're gonna need a bigger rudder! Or more correctly, forget the rudder - just pass around the floaties.
So you're suggesting that rates are going to go UP not down from here? Surely with the rest of the world on 0 - 1% we will follow at the first sign of trouble?
They must be living with their head in the sand. Real Estate values are tanking big time all over the place and still no-one is buying.
Quokka, the Skipper and Gilligan aboard the USS Minnow would gladly take you on as a swabby anyday!!!
I think the Aussies and Canuks are in the same boat with huge real estate bubbles that are about the deflate rigorously...
"huge real estate bubbles that are about the deflate rigorously..."
Hope your right, after 2 years of stress and wondering if i was making a huge mistake selling all RE and buying gold, I would like to not wake up every morning feeling an irresistible urge to read all last nights zerohedge posts. This shit is getting repetitive, I don't know how all the people who called it 10 years ago can put up with the waiting. Just fucking crash this shit already.
Old glenny is one of the more responsible central bankers, glad to have him over the other muppets out there.
some comedy for the evening...
seems the spanish govt is penalizing their banks for holding real estate on their books instead of "unlocking credit" and allowing all of those millions of struggling unemployed people to buy property........
http://www.bloomberg.com/news/2012-02-06/spain-s-property-purge-no-panacea-for-loan-drought.html
everyday it just gets more bizarre.................
-2.00% sell off on the shanghai.
aus central bank is waiting for the big one to cut.
RBA governor Glen Stevens ("glenny" as you call him) is an anal-retentive. Possibly a desirable trait in a typical banker but in a policy-making central banker it's a flaw. He evens speaks like a retentive--barely opening his mouth as he speaks. He reminds me of a farmer friend of mine who barely opened his mouth when he spoke in case the flies flew in. In Stevens' case it's not fear of flies entering but wisdom flying out that seems to be his fear. I wonder how many of the ZH readers know that he is on a m illion bucks per year--3 times more than Bernanke earns. Bizarre...but that's the world of central banking for you!!
This article is shit. the analysis about China exporting inflation is pure baloney - its not like there are any crazy suprises there ... average iron ore and coal prices can be estimated fairly accurately (eg +/-3%).
Unemployment is 5.2% and inflation in the middle of the range so no need to "pretend its all good" .. it IS good (for now).
Australia is mostly a two-speed economy
If you are not into mining, you are basically stuffed!
half of Australia is in Recession as we speak,after disasters,floods and draughts
and export troubles because of the high AUD and a collapsed Tourism Industry.
the other half of Australia , the Resources and Mining is mostly Owned by the UK/US and China
( Rio Tinto and BHP and Woodside Petroleum WPL.. )
The profit from the Mining does not flow through to the Australian Economy, but mainly
to the multinational Miners owned by Overseas conglomerates that take the Resources and Minerals out of Queensland and Western Australia or BHP Olympic Dam in south Australia and leave little for anyone else - the rest of the country is in pretty bad shape actually ! Interest rates are high and that's why the yield-curve is inverted...there is recession even though the RBA does "NOT SEE" or want to hear it.
Australia is basically a Banana Republic without Bananas and no Republic...
unless you are a Miner.
wr;)
So you want ZIRP and to fire up the polymer machines?
That will spark up the economy and get us out of this recession, it worked so well in America, right, right!!?
What argument are you making?
Don't bother asking for one, it doesn't have any.
No I want things to stay just exactly as they are:
F.U.B.A.R
no argument there,
except the high price of fuel gives me some grief
and I still have PTSD from last year when Bananas were $16 AUD per kg
while they cost 1 Euro in Germany at the same time.
Whatever happened to the free market economy?
How come we pay $6 AUD per Gallon of Fuel, when we got so much of it in OZ ?
How come the US only pays $3 USD if that?
well, I don't really want to argue anymore, cause to me it's obvious:
bugger thy Neighbour is at work courtesy of the RBA and Glenn Stevens
who loves Helicopter Ben and will do anything to help him and the US out.
Even if that means to screw up Australias Economy and americanize it!
but that's not my problem-
however the high cost of Bananas and Fuel in Australia is my Problem !
So I am asking the WHY ? Don't bother to answer, cause I know already!
We got to bail out the US and the UK !
I need to finish my CPL sometime soon,
or at least before Qantas moves to China.
AUSTERITY is a beach
wr;)
Tyler, your analysis is off on this one.
"When all else fails, pretend it's all good. "
Hardly.. we have inflation knocking on our door. Wait and see was the obvious and prudent thing, given EU shenanagans is only a few weeks away.
Not everywhere has the same monetary problems as the US. We're the switzerland of asia. (without the peg, hence no manufacturing industry)
Well U aussies are not painting a very good picture of AU.
My plan when all hell breaks loose, was to move there, find me a sheila and tough it out. Location?
I'm still leaning that way, what do you think?
In a big downturn jobs will be a big problem.
In an all hell breaks loose scenario, I can't think of anywhere better to be. We have food and energy up the ying-yang. We have awesome beer, and we have the highest marijuana consumption in the world, which may contribute to our generally not giving a fuck about most things. Plus nobody has any guns, and our government is too incompetent to be scared of.
On the downside, our sheilas are getting as fat as yours. Slutty though ;)
Think of it as a living breathing commodity hedge. Who needs gold when the streets are.. paved with coal... as long as someone keeps buying the coal..
unless you are a citizen they basically won't let you in....try new zealand... they are so desperate for anyone with a pulse to live there they might open the door
Agreed the board is made up of some very astute business people who know that a little heat out of the housing market would not be a bad thing. The proposed mining developments can and will be canned or mothballed if a recession hits World wide (as most here would agree). If that happens they need wiggle room.
I hope all the people sending us money to earn 5.75% + without undue risk are hedged because when it goes the Aussie $ is a risk weighted currency - in one direction. The Gold play above is a cheap and sound hedge.
Its the waiting thats the hard part - However OZTralia is in very sound financial postion - very sound so I would count its AAA as honest. We certainly have lots of room to borrow for capital works so desperately needed
What a load of fucking rubbish from you Cebtral Banker apologists. Glen Stevens is an arrogant cunt with a God complex. On what basis is he "smart"?
The line of thought that he is "saving for a rainy day" is misguided. Using that logic is like suggesting you should beat a dog everyday so when it does the right thing it will be rewarded by having a day without a beating.
It is raining..... should he tip the domestic economy over the edge first by forcing more of people's borrowings into the hands of the banks ?
So no go on the ASX?
was looking for a few miners down ere
figuerd be better than owning a home lol
Rumor that Armada Markets clients are massively short AUDUSD. There could me a major short squeeze coming. And then, of course, it all goes crashing down.
No one here understands that the RBA tends to follow the money market in its interest rate decisions. Money market spreads are wide at present but have been moderating in the last month or two, thus the need to lower rates is reduced. Wide spreads indicate stress in the money market which the AUD v other currencies tends to follow.
It is the spreads between government debt, repo rates, bank bills & such that determine which way the RBA blows.
That said, the money market also tends to follow the RBA, kind of like a casino but using your money. No wonder everybody wants to be a financial engineer these days, you can't lose.
Central Banks are idoits and the RBA fits into that category. All they have done is created a bubble with the AUD. With that nice yield a ton of cash will flow into the Aust markets. Good? NO lethal, if China finally accepts it,s going down the toilet anything connected to the commodity markets will feel the pain bad. If a flow of cash is suddenly pulled out of their economy, they can kiss their bonds goodbye. Which are bid due to safe haven. That happens, then the Aust property market will implode Dutch tulip style.
My guess thay will emergency cut very soon.
That was the scenario in 2008, the RBA was left holding the bag as the hot money flooded into the USD & Yen to catch the massive profits as UST's & other government backed debt exploded in price.
The difference now is the RBA has been 'prudent' in moderating credit growth so the potential for a devastating run on the RBA seems lessened. Doesn't mean it can't happen though.
If the interest rate was cut a whole heap more real estate speculators would be out buying houses still drunk from the high in 2007 naively chanting their property mantras.
"Unemployment is 5.2% and inflation in the middle of the range so no need to "pretend its all good" .. it IS good (for now)."
Mid range inflation is utter bullshit, if you believe that shit then what the hell are you doing here?
China exporting inflation is spot on.
The AUD is off to 1.12 and 1.30 if this shit keeps up.
If you think the ozzies are in a sound financial position then you have been listening to that parrot treasurer Swan too much and buying the shit he is selling.
Oz property WILL crash
Oz unemployment WILL rise (the numbers are fudged just the same as in the US)
Inflation IS rising
And NO it is not 'ALL GOOD MATE'
agree with everything you say excecpt for two things:
a) we have lots of food and lots of hungry neighbours. When shit gets real bad, I think food will be a lot more valuable than ithingys etc
b) we have massively more gold in the ground per capita than anyone else. By about a 100 times. The reserve bank already stated that they would seize gold in ground if it ever gets remonetised. 100 of millions if not billions of ounces. Hard to believe in gold and not also believe Aus will be OK ( not getting into an argument about the merits of .gov nationalising gold mines, it's just reality)
fnord88,
a) We don't have that much food. Yes we have space to grow, but we don't have that much food. When SHTF, farms will shut down etc. international trade won't really exist. We better hope we have lots of food, because we actually import the majority of it unfortunately.
b)It doesn't matter if gold is below ground, it needs to be above ground. You need oil to be able to get it out of the ground... You need companies to operate. .gov can't really do it by itself. They really should pounce on the gold now rather than just let international companies steal it.
It's nice to see some discussion over Oz - sometimes I feel we're a bit neglected down here on the world's anal rim. It's hard to get my head around what people (me included) need to do to ride out the 'financial armageddon' that seems to be looming over us - I've got some 'precious', which seems to be a sane enough move (I don't know anyone else who does, except my kids), but as far as stocking up on tinnies. meat pies and boomerangs, I'm not sure. 'Armageddon' is a seriously serious scenario and whilst it seems plausible that a financial collapse could develop into a more general one, it just seems that somehow it could never happen. I guess that's what a lot of jews in europe were thinking back in the 1930's. Anyway, when TSHTF I think Oz could be better off than many places. It's a bit of a worry though isn't it.
The best thing about OZ is the Weather -
If TSHTF you can get by on flip-flops (thongs) shorts and a T-Shirt
if you go up the coast, Byron Bay or Noosa heads towards Queensland or NT,
you don't need much at all. You hang out on the beach all day surfing and eating rice and vegies and lots of fruit.
Life gets right down to the basics and you just live for years on Sun, Wind and Surf, listen to music and party a lot. You register at the local CES and pick fruit sometimes when you need the extra cash. You don't need a computer, a car, a wife that nags, kids that annoy you or a neurotic dog that barks all day...well, you can keep the dog, if you really want. Life is a breeze ....
Austerity can be fun -
no worries mate !
wr;)
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