Not here to sugar coat facts

 Hi Readers 

It's interesting to see the responses I got from yesterday's post.

I'm not here to sugar coat anything to you, I say it like it is and if you can't accept it its a matter for you.

Oh and too the 2 real estate agents who sent me an email loaded, Happy to name any price as a bet, if you believe your right and I'm wrong.

So Lets look at where the Australian dollar is at and what's next. We have seen the Aussie dollar hold up quiet well considering rates in the US are higher. Why invest in the Australian dollar or bonds.

The Reserve banks has paused on rates at the present time which is a huge mistake. I say that because the devaluation of the currency will see higher import prices for product which will feed inflation over the next 3-6 months.

We saw New Zealand's central bank increase rates by 50 basis points with there current inflation rate at 7.2%. While the Australian inflation rate is at 7.4% and the RBA paused. Is it political pressure or mortgage pressure either way the independence of rates is no longer there I feel.

Current RBA rates are at 3.60% 

Current RBNZ rates are at 5.25%

As this is being posted AUD/US .6625 NZD/US .6200

So we have a 4 point spread yet on the currency and a 1.65% spread on rates. 

Why would you invest in Australia dollar or rates again? 

Regardless of whether the economy is struggling or not if inflation is double the rate of interest rates, inflation isn't coming down any time soon.

While in New Zealand yes the economy is going to slow down which will bring the balance back (supply/demand) zombie companies will go broke and new smarter and efficient companies will thrive and grow. The weak get cleaned out while the responsible push through with new opportunities.

While in Australia the economy is likely to seriously drag its feet. Government spending is going to create a drag on the economy. Yes migration will create demand of goods and services but with the lower Australian dollar will put pressure on margins which companies will push the costs to consumers, which will create consistent pressure on inflation, once again falls back on to the responsibility of the RBA. Its simply a cycle which growth produces.

I'm a huge advocate of the quicker we deal with it the quicker we get over and done with it.

If I was Governor I would have been moving on rates last year 1% every meeting from April -September last year. To hell with the property market and the debt people have put themselves in. If inflation is under control then the hard you work the more you keep.

While inflation is at the current levels it discourages people from working hard for reward.  

Solar Eclipse is coming people and its in Aries.

April 20th

I'll leave you with the following.

Changes are coming and they are going to be long term. Yes Australia, Indonesia, Papua New Guinea and the islands around These countries will be affected.

Can You Remember what you did in 2004? if you want a glimpse of what will take place and how the Eclipse will affect your demeanor and changes you will go through look back for the clue's.  

Time to realize that the media are full of shit

 Hi Readers 

So we have seen a small correction in the Markets, since then we have had a nice bounce in the market which is wonderful.

What many of you need to realize that this market isn't going to just crash in a week like it did back when covid lockdowns took place. This is going to take months to play out.

There is a number of prolonged rotten events which took place over the years which are coming home to roost now that money costs. So much fake wealth has been created which needs to be flushed out.

We look at people with mortgages who are maturing and worry at the debt burden. Yet we forget about corporations, banks and countries who are hold debt which is maturing also. There are massive problems out there which the media has been instructed to not over report on due to its seriousness.

Australia has a debt interest payment it can't pay after August, so yes rate are going higher regardless of what anyone tells you in the media. If rates don't go up then Taxes must. Governments world wide have spent money like drunken sailors thinking that growth will always continue but this isnt the case. We have borrowed so much of future earnings that its out of control. I've worked it out that its around 11 years of growth we have borrowed, as this mature we will see more stress on people, companies and governments.

So lets look at the corporates ,super and property trust. For a second time Blackstone has had 3 billion in redemptions and has only paid out $655 million. What does that mean, they can't sell the properties they hold as the loss they take will be huge, and so money is locked up, and investors have no access to it. Blackstone is the biggest property owners in the world, when they cant pay out redemptions what does that tell you. Pimco the biggest bond fund has had defaults on a weekly basis. They bought corporate bonds and the interest and capital payments haven't been paid to them.

Lets look at Australia we have all this migration coming in yet we hear in the media that rents are exploding in price, and that there is a supply shortage ?

Really if there was a shortage then why is it that Ray White in Southbank has over  40,000 apartments empty in Southbank, the Docklands and the north side of the city there is at least another 40,000 apartments vacant. The Melbourne CBD still hasn't recovered from the lockdowns with offices vacant for so long that the renovation have commenced to turn them into apartments for living. 

People are being rounded up like sheep to move them into these apartments. How this is done?

If you look at the fine print when you buy these apartment you will see that you don't really own the apartment, you own the rights to it but not the actual building structure, its why you have to pay body corporate fee's to maintain the building you don't own it.

So the majority of these CBD apartments building are owned by the Superannuation fund, they play the similar games as the American Funds where they never devalue the buildings because they have a source of constant income while the building are rented out. But that has all changed since lockdowns and the increase cost of money. Body Corporate rates don't cover the losses they have incurred and are continuing to incur. Its why they lobbied the Australia Government to allow everyone to come into the country in the hope that people are out priced out of property market and they come back into these dog kennels. The people who are coming into the country are all low income earners who will with support have the ability to buy property in the outer growth corroders of states while the Australian residence who have lost ten years of there lives will have no choice but to buy these apartments and becomes slaves. You will own nothing and be happy !!! This is how its going to play out. 

So lets now look 2 steps back and understand whats playing out. Anything on the Block chain can be tracked and blocked at will should authorities want to, which puts to bed the rumor about Crypto's. Its was a IMF orcastrated thesis into the financial world to lure the Millennial's and the Gen Z into fake wealth. There so addicted to it that they have the believe and hope that it will come again and it will but first they need to wipe them out before the next move.

What is the one thing that governments and banks are try to restrict (CASH) it is and has always been the only thing that they cant track it. Yes in Australian with plastic notes they can track but there are waysto stop this, think outside the box.

I've made mention of this before but obviously people don't believe until its too late and you can't take your money out of the banks.

The US congress is forming a bill to stop people from taking there money out of the banks. The lairs succeeded in blaming the people for taking there money out of the banks for the run SVB.

As I said before we have only just started this aspect which is going to affect banks worldwide, there is much more to play out. To the Australian readers I did warn you that the Australian Government passed a bill that money in banks can be used as collateral for the banks. Banks went one step further by send everyone new terms and conditions which no one reads which states that all your deposits in the bank are the banks money and can be used to the discretion on the bank.

Just keep that in mind and be prepared, tough times are coming, but you'll be told its only you and everyone else is doing fine. NOT TRUE REMEBER THAT.