We need our government to spend more money it doesn’t have on infrastructure. It should create new jobs, and the income from that needs to be spent in the economy, spurring on businesses to borrow more at record low interest rates to increase production.
I’m beginning to think Australia is just one giant game of Monopoly…Pass GO every fortnight or month, depending upon your employer, and receive $200.Try to buy up every Australian property in sight…even the cheap disgusting ones.Speculate on which side of the board you’d like to control...
If the academics have found anything, it’s that interest rates have little bearing on growth at all. In his 2018 Reconsidering Monetary Policy paper, Richard Werner finds the relationship between interest rates and growth is actually positive…meaning interest rates and growth move together.
What we might end up seeing is a level playing field for all. What I mean by that is costs for producing goods in Australia might be as low as they are in China. In such a world, where machines do the work, labour costs become redundant. And thus, producers in Australia can compete with those in China.
When push comes to shove, who wants to rely on trading partners? Some suggest this move away from globalisation might be what’s causing economies around the world to grow so slowly.
Productivity will be the death of manufacturing… Efficiency, productivity and limited demand.That’s what killed agriculture and it’s going to kill manufacturing too.
As time goes on, investors are starting to wake up. We’re starting to understand what Trump is actually doing. I’m sure initially investors thought Trump was crazy…
Fund manager Ray David recently pointed out in a LinkedIn post that Aussie tech/software values are now trading at similar multiples to five of the richest Nasdaq stocks in 2000…
Let’s take a quick trip to China. Where the cities are crowded, the air is average at best and there are EV start-ups everywhere. As of March this year, there were 486 EV manufacturers in China. And guess who have been the stars of China’s recent stock market listings?
You’d think with all the uncertainty going on, stocks would be having a terrible time. Not the case. Stocks on the ASX continue to climb. The largest 200 shares are now up 13.3%.