Australian (ASX) Stock Market Forum

New Budget - Has Your Voice Been Bought or Has Your Future Been Sold?

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New budget was out this week with Josh grinning all over the mass-media and capital letters in every title saying that the pressure of rising prices has been bravely alleviated by our clever government.

I skimmed through the budget on the weekend, and I feel "used”. That is my usual feeling when dealing with the government (any government for that matter) but his time it was aggravated by pervasive action and brutal assault on common sense.

The take-away from this brilliant budget is that the government want to fight price inflation with … printing more money? Really? Moreover, they seriously suggested that fiscally stimulating (giving that printed money away) extra spending on those inflated goods and services will alleviate the inflation pressure?

I naively thought that one would NEVER want to fight inflation with printing even more money. Also, giving free money to those would have a higher propensity to spend it will 100% guarantee even HIGHER inflation.

As a country, we have just thrown another ~10 billion into a large inflation bonfire with more to come. Here is how I think it will develop if that continues:
1. At some point, the change in prices will become unsustainable for some businesses to function and they will fold.
2. This folding, funnily enough, will INCREASE rate of inflation due to less remaining supply and still functioning businesses and individuals COMPETING for a lesser size of a pie.
3. Which in turn will create a domino effect for any price-sensitive business out there which will coincide with a massive demand destruction and massive lay-offs and businesses going bust one after another
4. At this point we are deep in a DEPRESSION with no jobs and people bartering for food and essentials
5. Inflation solved, good government

Wild imagination, you say? Not so wild if you know what is happening in Aussie construction industry – 2 major companies folded and who knows how many minor have gone bust (I know of 4).

What are your thoughts guys?

If RBA won't start rising rates and , I reckon we are heading for a recession and ASX is heading south.
 

moXJO

menace to society
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2 speed economy.
Commodities are running hot.
After all this rain, next years crops should be a bumper harvest. World food shortage.

It's hard to get anyone to work though. And those industries not connected with the above are struggling to get anything done. So they will end up going broke.

Agree with the stupid spending eventually killing us. But we are falling into luck once again.
 
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lots of things going badly ( and not making headlines )

heard an anecdotal comment yesterday comparing fuel ( diesel ) prices for Mount Isa a month ago compared to Brisbane this week ( and Brisbane wasn't cheaper )
 
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lots of things going badly ( and not making headlines )

heard an anecdotal comment yesterday comparing fuel ( diesel ) prices for Mount Isa a month ago compared to Brisbane this week ( and Brisbane wasn't cheaper )
I paid over $2.30 for diesel yesterday. I will be only travelling to work and to do essential survival shopping which will reduce how much cash I will be spending in many local shops and businesses - this is economics live.
 
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I paid over $2.30 for diesel yesterday. I will be only travelling to work and to do essential survival shopping which will reduce how much cash I will be spending in many local shops and businesses - this is economics live.
2.335c for diesel in north sunshine, got it cheaper at 2.29.
Start counting when petrol only cost you 20 bucks per 100km.
Easy to cost more in petrol than coffee when visiting your barista
 
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2.335c for diesel in north sunshine, got it cheaper at 2.29.
Start counting when petrol only cost you 20 bucks per 100km.
Easy to cost more in petrol than coffee when visiting your barista
$2.33 is exactly what I paid.

I do buy premium diesel tho, nobody can actually tell me why it's premium, the manager admitted he had no clue and nobody at the higher levels could produce any data or info on what this premium diesel is other than its premium so I think I will go back to just diesel.
 
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