5.4% inflation, its still brewing in Australia

 Hi Readers

So the inflation number just came out in Australia and what do you know inflation was higher than expected. So why now all of a sudden that we need to move on rates when inflation was anticipated at 5.3% and it came in at 5.4% in Australia this is. For .1% higher who cares, what's the big deal.

Its what your not being told is the big deal ! and that is that unlike in the US where there is strikes everywhere for more money by employee's, companies in Australia have absorbed the costs believing that inflation was going to come down, if we see another number of higher inflation companies won't hesitate to increase costs heading into Xmas.

The bean counters will be crushing numbers to see where the companies profitability is at as of tomorrow and into next week. The US is in a similar position just more into the process than what Australia is. 

Now lets look at why has happened since rates have moved up.

Governments around the world know full well the implications of what higher rates will do to the property market so, they too the approach of letting anyone into there country regardless of what they do or what they earn, I say that because I know people who have come from Burma to Australia and the guy is a diesel mechanic. The Australian government has been advertising it overseas that anyone can come with a trade or laborer. Now these people need somewhere to stay and they are coming for a better life to Australia so the government knows they can't buy homes but can rent. What do we currently have around the western world shortage of ? property rentals.

Doesn't matter where you look, Canada, Australia, New Zealand, UK, US or Europe its all the same. So we have this going on to protect banks from defaults while house prices are coming off but not as quickly as many have anticipated with property investors being drained of there wealth. IF your paying 6 or 7% mortgage rates and returning 1-2% your 5% in a arrears. So its going t take time for this to play out and here is the other scenario lets assume that inflation does fall away and the economies around the world turn to shit, what is the only thing the central banks do. Yes cut rates and if this does happen before we get a clean out of debt asset prices on property, shares or vehicles will explode making everyone poorer for it.  

Why do I say this well if your not able to afford a $1.5 million home now in Australia what makes you think you can a 2.5 million home if the central banks cut rates. its my belief the BIS want to bankrupt the world. Every government is a slave to the BIS, they do as they are told.

So you don't want rates to go down at all if anything you want them to stay where they are or go higher. We need to clean out the excess debt out of the system before rates come down or there will be no real growth