Housing prices in Melbourne and Sydney have dropped 1.2% and 1.8% respectively in a month, a rate that is alarmingly quicker than what we have seen throughout this year. Combine this with property listings in…
There’s no point explaining why this is an important area of investment that we all should pay attention.
It is, after all, what translates our investments into true and honest cash.
It’s also one of the largest mixed market economies in the world, producing a GDP of almost $1.7 trillion in 2017.
In that same year, we were second only to Switzerland as the wealthiest nation in terms of wealth per adult.
2018 marked the 27th consecutive year in which Australia’s economy had grown, recession-free. This achievement is officially the world record.
Indeed, the last recorded recession in Australia ended last century…way back in 1991.
But is it all good news?
The Dark Spots of the Australian Economy
Well, around the same time we grasped that recession-free record, Australia also achieved another record…
But this one was not the kind to celebrate.
In late 2016, Australian households became the most over-indebted households in the world.
It was also found that Sydney and Melbourne were home to the greatest amount of over-indebted households. There was a total of over 800,000 over-indebted homes across the two cities.
Sydney and Melbourne are quickly becoming some of the most expensive property markets in the world.
And yet somehow, we’ve still been able to grow…
The Lucky Country?
The Australian economy has benefitted hugely from China’s decades of economic expansion.
Chinese demand for resources led to a mining boom that peaked in mid-2012.
And then, when the mining boom collapsed, the Australian economy was thrown a supposed lifeline…
In a desperate attempt to keep GDP growth positive, the Reserve Bank of Australia — the RBA — issued ever-lower interest rates. The aim was to encourage Australians to borrow from the banks, thus keeping GDP growth up.
Technically, this method worked.
But the reality is…
Debts are rising because rates are falling. And wages aren’t increasing like they used to.
Something isn’t adding up…
Australian Economy News, as it comes…
In Markets & Money, we work to connect the dots on the Australian economy to give you a clear picture.
And part of that picture is connecting record economic growth, with record debt and record home prices.
With daily updates, we’ll make sure you know exactly where this ‘land girt by sea’ is in terms of its economy.
Read on below for our most recent views.
Surely agriculture, given its most basic but important task of all — feeding us — should hold a much bigger place in the minds of our governments.
The recent OECD Economic Survey for Australia comes in with a warning label for the government. The fact that property prices are falling could shake consumer wealth and, in consequence, consumer spending.
Australians are starting to learn the truth about our ‘record breaking’ economy. It’s all been built on one big fat lie…you can borrow your way (indefinitely) to prosperity.
Current Australian household debt is over 100% of GDP. Debt-bingeing and consumer spending has driven the economy in recent years.
It seems that the cease fire in the trade war between the US and China was only fleeting. And US stocks were destined to continue their nosedive. this market chaos isn’t just confined to the…
There is something, in my opinion, that we could all be taking on board from Airbnb’s new venture.
What if everything we’ve been told about how an economy functions was based on a false premise? The shattering of long held beliefs is going to create enormous disruption to peoples’ lives.
Just like fashion always changes — some might say ‘evolves’ — so too do the way retailers sell fashion. In days gone by, it was customary for a budding designer to rent an old shop…
The Aussie property market has had one of the longest runs in the world. Prices have gained a whopping 6,556% since 1961. But, 2019 is shaping to be a much different scenario.
That’s the bad news…cash is going to get uglier. The good news is, the further markets fall, the more our cash buys.
I want to address another issue that could have a major impact on the Aussie economy for years to come. I’m talking about our dire political scene.
In 2016, Australia legalised medicinal cannabis. Now the Australian Capital Territory (ACT) is looking at a bill to legalise cannabis for personal use.
In Australia, according to a Reserve Bank of Australia (RBA) survey, in 2016 over half of payments were made with card, and only 37% in cash, down from 69% in 2007.
The Rum Rebellion is a uniquely Australian voice commenting on the nexus between money, stocks, politics and economics. We have a libertarian view of the world and believe in free speech, individual freedom and personal…