Harry Dent was at it again today, saying that Australia's housing will plunge down to 2012 levels, which will affect me as I bought in 2014. Would I care if this would happen? Not one bit!
My concerns have always been how we have overpriced everything from wages, services, housing, rent, council rates, utility bills, insurance, education, food, etc., on the fact that the excessively cheap Chinese goods artificially lowered inflation to obscene levels, whilst boosting consumerism and profits. The divergence in costs between the high-priced items/services listed versus the cheap imported goods had gone exponential, and there will be no return to any form of normality without taking some serious butt pain for many, many years. The truth is that real inflation has been allowed to (but also deliberately manipulated) to get away from us because it made us seemingly wealthier. Higher house prices and wages meant consumption would be rife. Did anyone not think that it was odd at just how many people went on overseas holidays each year? Did anyone not notice how debt is no longer taken seriously or how people have no issues going into retirement with mortgages?
The few things that annoy me:
Why complain about China now and not before?
Why does the majority of goods found in Kmart, Target, BigW, etc., are made in China?
I don't have a problem with things being made there - I have a problem with the fact that virtually everything is made there, which is why we are in this situation.
There is one thing, however, that China does not have, and that is resources on its own soil.
