Australian Economy
Australian Economy
labor tax changes
Labor Plays Rich Against Poor to Grab Your Cash Dividend Bonus
labor tax changesNot only will it hurt the so-called wealthy, it will hurt those with no taxable income who enjoy the cash bonus in retirement. Of course there are investors on the other side of the fence. But what about those who’ve set up plans to benefit from these franking credit cash bonuses? Is Labor going to toss them to the side to win votes from the have nots?
Why Gold Is Building Towards a Breakout
gold breakout coming?Right now in Australia, we’re getting low nominal wage growth and increased costs in about everything. That means many Australians are experiencing a reduction in REAL wages. Inflation is coming. It may not hit next month, this year, or even the next. But it’s coming. Which brings me to gold. When the market realises that governments and central banks will put up with higher than expected levels of inflation, it will start moving ‘insurance capital’ into the precious metal.
Australia’s Real Economic Growth Rate Will Shock You
economic growth rate in AustraliaIt is everyone’s individual responsibility to improve their own standard of living, and not expect the government to do so for them. But at the aggregate level, it is certainly the role of government to ensure that people have the opportunities if they wish to take them. And on this front, they’re failing us badly.
Stagnant Wage Growth to Continue into 2020
wage growthAustralians’ pay packets may be growing in pure numerical terms. But once you factor in interest, you can see that wage growth has been steadily declining since the 1970s. No matter how hard you try and spin in, there doesn’t seem to be any relief in sight for Aussie workers.
The Nanny State’s Crowning Glory
trade wars and nanny state lawsI’m talking about politics. Specifically, the potential for the Trump administration to start a trade war with China. Before we get into that though, let’s have a look in our own backyard. This latest ‘no sex with staffers rule’, to pretty much stop ministers from being immoral jerks, is the Nanny State’s crowning glory. It says something about the quality of individuals we have vying to run the country that it has come to this.
Aussie Banks in the Firing Line
Aussie banks in the firing line with Royal CommissionThis week saw the launch of the Royal Commission into the banking industry. Anything that affects the banks is likely to affect the entire Australian share market. The Commonwealth Bank is Australia’s largest company by market capitalisation. Combined, the banks make up a third of our share market. A loss of confidence could be catastrophic.
The ‘Magic’ of the Aussie Dollar
aussie dollarAustralia, as an investment destination, suffers from an increase in risk perceptions. Foreign capital is less willing to invest here, or buy debt issued by the banks to fund the mortgages of Aussie battlers. As a result, the Aussie dollar falls. However, the ‘magic’ of a falling dollar is that it increases the purchasing power of foreign currency.