What’s going on with the world economy today? (116)

Funny thing AA

The world has millions of religious followers... the bit where I get really confused is that I have met many people in my life time, and only a couple of them were religious ... am I meeting all the wrong people???



Even my parents taught me at a young age to only believe in yourself and not religion...

I don't do confessional as I would be there to long

No Merri she just wants to tax us till we drop she couldn't give a stuff about it but to get the greens vote she had to do that and saw it was a nice little earner too.

Funny thing is the greens now would agree to anything to stay in their cosy spots.
They know if Labor loses power they do too.

Well, if people have no money to spend the banks will eventually also loose out. If speculation would be taxed most money would go into productive activities that actually create wealth - manufacturing, research and services.

Speculation only creates perceived wealth. You *think* your home is worth so much because someone paid such a price for another, similar home. SO you think you have equity in your home and borrow against it to have a holiday, but a new car, new furniture, a pool, etc. Now, when home prices are on the rise, this creates inflation because it generates an artificial demand based on perceived wealth. However, if some guys start paying less for similar homes, suddenly the equity in your home evaporates. And many people soon will find that they have more debt than their home is worth.

The only way to recover from the crisis would be to reverse what was done over the last decade, when the rich got big tax cuts, while the rest of the people were asked to show wages restraint for the sake of keeping inflation low. This was a big fat lie, for the inflation is not caused by people on low incomes, but by people who speculate. They push up real estate prices, and in turn increase commercial rents, which businesses have to charge on their products. Commercial rent is a significant component in the price. I know someone who was paying $30k/month for her beauty saloon rent. She had to therefore earn $40k/month to break even. Now if her rent was only $5k/month, paying more to her employees would not have been a problem and she could have provided her services a lot cheaper.

But commercial landlords are not willing to negotiate, they most often rather allow their tenants to go bankrupt than negotiate lower rent. And they cannot negotiate because they paid a very high price and the bank expects the repayments.

So why is it that the worker is punished for the crimes of the speculators? Why the home owners are flogged with the interest rate increase when they did no wrong? Maybe because those in the government have a vested interest not to touch these cowboys, for they also own prime real estate, why would they let prices to fall?

The way out of this mess is to tax the rich, remove corporate welfare, boost small businesses by significantly lowering the interest rate for them on their borrowings, and give money to the poor (increase wages, increase welfare) - to reverse the damage done, to lower wealth disparity, which is the problem. This alone would create cashed up shoppers and save business. That money that you take from the rich is not theirs anyway. It was stolen from the lower class by telling fat lies to them, like "trickle-down economy" and blaming them for the inflation.

Pop the bubbles, tax speculation. Put a 90% tax on rent increases, put a 90% tax on price increases.

I don't think many people would complain about $180k median house prices, for that is what it should be, which is 3x the median income.

You, everyone, better put your super into cash equivalents else you will find most of it evaporating to a much worse degree than last time in 2008-2009.

A lady I worked with and her husband lost 175k!!!