Australia's largest stock trading and investment forum Australia's #1 stock forum

Believe what you want to believe but you and me are miles apart...

First 22 Last

Share
Profile

Follow
TheCapatilist

4,250 Posts.

109

06/06/24

17:08

Post #: 74199623
Share

Originally posted by Scott th Ratbag: ↑

I agree... the risk of not managing inflation carefully is indeed stagflation.... which is where we were headed under the LibNats.

the Labs seem to be working concertedly with the RBA to manage the problem. the current dip to meet the worst GDP figures of the LNP years is suitable and indicates its time for a turn around to stimulus next budget. Bullock said that from the tax cuts (stimulus) there would be small rise in consumption and possibly a tick up in savings (though I doubt this) and that the budget was not inflationary.

from these effects we should avoid stagflation, if the current moderate policies are left in practice.

But economists including Flavio Menezes from The University of Queensland say while the budget measures might “mechanically” suppress measured inflation, they are:
Former Reserve Bank board member Warwick Mckibbin says the bank is likely to “see through” (ignore) the largely temporary mechanical price reductions and “raise interest rates to where they should be”.
Others surveyed, a minority, argue the economy is too weak for the extra spending in the budget to boost inflation through consumer spending. Former Finance Department Secretary Michael Keating says any stimulus is “likely to be swamped by the economic slowing well under way”.
Independent economist Saul Eslake said the subsidies for energy and rent would inject only $3 billion into the economy in 2024-25. This meant any boost they would give to underlying inflation would be hardly “material”.
https://theconversation.com/top-economists-give-budget-modest-rating-and-doubt-inflation-will-fall-as-planned-230670

as I aid, theres a wide range of opinion so its hard to speculate from any source(s).

Expand

Believe what you want to believe but you and me
are miles apart on where we stand on inflation
and the economy.

“It’s hard to speculate from any source (s)”

This is an investment chat forum, I would expect
most people to be speculating to some degree.
I speculate daily and it’s the reason I’m so
interested in what will happen with inflation and
interest rates.
My view is inflation is a long way from being
under control, the RBA has not done anywhere
enough and we risk a much bigger push up in
interest rates and the longer the RBA takes to
take decisive action the more painful it will be
later on.
3 Upvote

Reply

Top Stories

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

NXM

Drilling at Bethanga shows signs of Cu-Au porphyry system for Nexus

SFX

Sheffield Resources achieves milestone production, shipments at Thunderbird, WA

ASX200 dives as inflation clocks in at 4% – higher than 3.8% consensus

NIM

Nimy extends sulphide targets at Mons with new anomalies identified