by Shae Smith on June 1, 2010
The media is at again.
And yesterday, ‘inflation’ reached it’s highest annual level since October 2008, supposedly ’smashing’ through the Reserve Bank of Australia’s (RBA) own self imposed target inflation rate of 2 – 3%.
However, the media were quick to point out that smokers were at fault – again! You see, the new 25% tax on ciggies apparently caused the inflation gauge to increase as much as 0.5%.
And of course, with the RBA meeting today to decide to increase rates, according to one journalist these figures are a sure fire indicator that the RBA will have to raise the cash rate.
But then, according to another journalist, at the same paper, because lending and new credit has slowed, these inflation figures are only a warning sign, but it’s unlikely that interest rates will increase.
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by Kris Sayce on May 12, 2010
There are plenty of myths and legends in economics and politics.
One that has gained a lot of support – thanks to bureaucratic propaganda – is that tax cuts are inflationary.
Needless to say, this downright lie has been lapped up by the political hacks in the mainstream press. Largely because, well that’s what the bureaucrats and politicians have told them, so it must be true.
The reality is that tax cuts are no more inflationary than a tax increase is deflationary. In fact it’s probably more likely that the reverse is true.
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by Kris Sayce on May 10, 2010
“At the end of the day Im just a mug punter but even I with my limited intelligence know the definition of “super” I mean imagine if Super mans powers were slightly greater than that of the average man….. he wouldnt really be “Super man” now would he, he’d be “Slightly better than average man” doesnt have the same ring to it though does it?”
- Young-Trader, Hotcopper
We wrote about 8,000 words on the so-called Super Tax last week. But I reckon the post by ‘Young-Trader’ on Hotcopper sums it up just as well in only 65 words.
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by Adrian Ash on May 5, 2010
With or without hyperinflation, today’s welfare-state obligations – just like 1919’s war reparations – are simply too big to be paid…
The EUROZONE’S PROBLEM? In short, it’s history…precisely what the single currency was supposed to neuter, of course.
Greece’s still-pending €110bn bail-out has already cost three lives in Athens’ riots today. More bloodshed inside Western Europe would make a horrific end for this grandest of grand post-war projects…the crowning achievement of Europe’s longest-ever period of peacetime.
But thanks to history – and the very same history that built the Euro, as well – Germany cannot inflate. The rest of Europe, however, cannot do anything else. Sharing one printing press was always unwise. Now it makes UK prime minister Gordon Brown look smart for staying outside. Which really is saying something.
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by Adrian Ash on April 7, 2010
If you’re queuing up for a lug on the bong of forced-risk, just take a moment before you inhale too deeply…
THE LONGER that interest rates stay below inflation, the more people will be forced to take more risk to defend what money they’ve got.
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