CBA 0.32% $132.26 commonwealth bank of australia.

Banks hit Triple Bottom support, page-115

  1. 1,965 Posts.
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    If we're experiencing deflation that means wage growth inflation (in real/relative terms), so no you're not seeing the purchasing power of employees dropping. Nothing wrong with wages stabilizing if the cost of living is stable or going down.

    Free market prices culls the uncompetitive producers, so they can't sit on their laurels and stop innovating - that is how healthy investment and expansion is driven. If prices are fixed, the market becomes saturated with inefficient producers enjoying cartel prices. Prices kept artificially high then distorts the market and shifts investment to non-performing sectors, taking it from others more worthy of investment. The future is fully automated minesites, and the sort of efficiency we can expect from this will absolutely drive down the prices of commodities. It will benefit practically everyone, as will low energy prices. It's nuts to suggest we limit the productive output, in order to stimulate the economy. It's like razing crops to boost agriculture prices.

    Don't you understand some commodities are still at historically inflated levels (including copper)? As I said before if prices were at uneconomic levels, but supported at those levels due to government intervention, that's a bad situation, but we're not seeing that. Cheap credit will contribute somewhat to overexpansion - except miners aren't enjoying 0% loans, seems only the bankers get that privilege. So it looks like we don't have to worry about oversupply borne from cheap credit.
 
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