Feel Better:Complain About Anything

Originally posted by picastoc: ↑

I was listening tonight on the ABC re the limitation which Australia has which is the interest rate. The interest rate controls the demand side but it's the supply side where the real problem lies, largely affected by Russia. Years ago there were more controls available and utilised to more accurately control the economy. Banks had more controlled placed on them. I recall teaching about all kinds of ratios which needed to be maintained. Now they are many more freedoms although recently dishonest practices have been exposed and large fines imposed.

Fortunately, our economy doesn't have high unemployment, personal savings are high enably a good standard of living although these savings are largely held by the well-off rather than those who live more closely to the breadline.

If the RBA overshoots with the raising of interest rates, then we risk recession and rising unemployment. Certainly the interest rate was for ages able to be kept comfortably within the 2 - 4% range they aimed for, and it was quite a rapid change when suddenly inflation blew out.

This morning I was speaking with a friend re had she been alarmed at suddenly finding some of her expenditure were reaching rather high levels. She said she hadn't noticed. Food here has, of course, been adversely affected by floods, I feel very sad for those farmers losing their crops, some twice over now.

The share market barely gave a blip after the governor's interest rate increase. That says something.

With unfilled job vacancies people are being urged to move into new areas of interest to them, viz change careers, or even ask for wage increases.

Lack of supply is sending builders to the wall here, and many people losing their deposits and house dreams smashed.

All to do with demand and supply. The balance so badly affected by Russia and Ukraine....

ps Hope you are enjoying your MAY share dramatic increases. Well done to you, jo jo.

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Dear pica, I am almost falling asleep here, but your post as always is so very interesting I will try my best to comment.

Re banks, I do remember when there was more control over them. When the RBA increased the rates the banks were either not allowed or were strictly encouraged not to increase above the rate, although this had no effect and they charged a much higher rate. Atm this appears not to be happening, long may it last.

Yes unemployment is no problem, but certain industries such as tradies will need to look for new employment, but I feel a lot have been overcharging for the simplest of jobs so perhaps this is a good thing.

Yes farmers, generally lose out, all this nonsense about lettuces, I have read so many accounts where the farmers received no extra money and the supermarkets were just taking advantage of them.
We endured the same problems in England when we were growing organic vegetables on a large scale for the major supermarkets and they totally screwed us over.

I was wondering if there would be a sudden dip after the RBA announcement, but no. There was nothing, unlike the last one. Hopefully people are now ready and prepared this time.

As always, it is the poor people who can least afford this inflation.

Re the builders going to the wall, the thing which I fail to understand is as far as I was aware, builders are supposed to take out insurance, I cannot recall who pays. But several years ago, we were having some new units built, part way through, the builders went bust and the insurers engaged another company to finish the work at no cost to us, even though it cost a great deal more.

I saw a really sad video today, it was about a 100 year old soldier in the US. He was supposed to be celebrating his birthday, but was in tears as he felt that all he and many of his friends who lost their lives had sacrificed was for nothing, very touching.