Friday, 30 August 2024

It Is Not Your Imagination

 


It is not your imagination, as a nation we are getting poorer and our money is quickly losing value,

“Australia is already experiencing a prolonged per capita recession.

As illustrated in the following chart, Australia’s per capita GDP has fallen for five consecutive quarters and six times in the last seven quarters:


Image: From Macrobusiness.

Next week, the Australian Bureau of Statistics (ABS) will release the Q2 national accounts, which will show that per capita GDP fell for a sixth consecutive quarter…

…Given that Australia’s population increased by 0.65% in Q2, as implied by figures from the retail trade release, this suggests that per capita GDP declined another 0.45% over the quarter.”[1]

According to Macrobusiness household disposable income in Australia is falling at a fast rate while other OECD nations have seen increases. The retail sector has taken massive declines because of this, and the job market is deteriorating,

“Deloitte Access Economics cautioned that retail conditions won’t ease anytime soon amid reduced spending by households due to mortgage rates and cost-of-living pressures.

Deloitte Access Economics partner David Rumbens described the retail sector as an “economic horror show” given the high cost of living, increasing insolvencies, elevated interest rates, and the deteriorating job market.”[2]

So, it is not your imagination. A family member showed me the other day what it cost them nearly $600 to get from the grocery store, and it was not fancy stuff, or what you would think $600 worth of groceries would be. We are being slowly strangled in this nation, and our government has the gall to act like wealth is increasing. There are even politicians who are suggesting that people should pay more wealth taxes, because houses, and some other assets, are worth so much more. But what use is your house being worth more to you, if you are not intending to, or cannot sell it and rebuy somewhere else?

With one of Australia’s leading exports, iron ore, having significantly dropped in value this year, it appears that the Australian economy is about to get the rude wake up call that many have been predicting for some time.

The thing about being a lucky country is that eventually your luck runs out. In this case the luck is running dry because of an increasingly arrogant nation that flaunts sexual depravity and other degradations continually, a lack of moral or courageous leadership from our governments across the board, and a terrible greed that has turned Australia’s housing market into a system for boomers to fleece all other generations so they can support lavish lifestyles right up to the time they leave this world. All of this is building towards a whirlwind of trouble for the Australian economy. Hold on to your hats.


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