RE: Precious metals rise as global economy faces recession9 Jun 2020 00:14
Recession, debt levels. Well before the covid crisis, Australian had record debt levels.
...In fact Australians have the world's second-largest household debts...there is increasing evidence it is changing our way of life. Hovering around 120 per cent of GDP — that is everything the nation produces in a year — Australia's household debt is second only to Switzerland, and we're not too far behind the Swiss...Household debt is almost double disposable income, twice the level of the U.S!, and well over a year’s annual output. Mainstream economists and the central bank have long argued that while people have jobs and can service those loans, the risk of a hard landing is slim...but the there is Covid, and jobs went out the door at the fastest rate in Australian history.
Australia’s central bank governor has warned ... "very large economic contraction” and unemployment increasing "to its highest level for many years,” an unusually blunt assessment from typically optimistic Philip Lowe...in fact it is the highest unemployment and underemployment ever if the one really looks at the statistics, (made worst by the help the government is offering in the generous $1500 per fortnight stay home and surf allowance, which sees many of the previously underemployed who earnt $1000/fortnight doing casual work, now opt for unemployment and get $1500/fortnight)
"There’s no doubt that we’re going into the greatest job destruction period ever,” said Bob Gregory, a professor at Australian National University in Canberra who specializes in the labor market and has studied the economy for more than half a century. "This looks like the most serious recession-depression we’ve had since the 1930s, and there’s going to be a big income loss in the next six months.” ... Its a lot more more serious than the 1930's from what I can see, but I don't want to sound alarmist, but this is going to require a lot more than a few well meaning and credentialed economists doing a love in on ZOOM or alike. I am waiting to see the fallout of the Universities (4th largest export earner and I wont mention the massacred 5th largest export earner, travel services) reliance on foreign students to finance their extravagant lifestyles and indulgences. (I recently learnt of a Prof who took paternity leave so his new wife who had just given birth could take up and expand her new start-up business -walking dogs called ... walk-a-dog ? LOL) All this on the back of rapidly worsening relationships with our largest export customer!?..AND THEN YOU KNOW WHAT HAPPENS...THE AUSTRALIAN DOLLAR GOES UP GAINST A HOST OF CURRENCIES?... and you know what that means.
Very happy with my exposure to gold, far more worried about my holdings of fiat paper (low interest rates and depreciating in reality by the day in terms of what it really buys) at the moment
Stay happy, safe and invested in gold and CEY!
regards
the Gnome
Sign In
Follow the stocks
