As of the First of September The Australian Economy will start to stress.
With a Lunar Eclipse and some powerful negative astrology facing the Australian economy, I doubt that government will have the capacity to resuscitate the economy.
With the Reserve bank cutting rates for home buyers and the government taxing house holders more than ever before I struggle to see how the economy can stay afloat without major political changes which wont happen.
Regardless of who wins the next election the landscape which Australia has thrived on is flaking apart.
While government must lead for its people in the last 8 years its been the adverse.
Most countries tend to right up huge amounts of debt when they devalue there currency.
This way when the currency appreciates you can basically wipe of 20% of the debt because of the strong currency, its very simple economics.
But for some reason in the last 5-8 years this hasn't been the case.
Australia has gone about writing huge amounts of debt with a strong currency.
Should the currency fall by 5-10% which I believe strongly it will in the second half of 2013 then Australia's debt will increase by the same amount if not more when you had interest to the debt.
Followed with lower tax revenue for the next 3 years with consumers refusing to spend, mining taxes slowing, I doubt that the Reserve bank can cut rates to prop up the economy or government.
The old ways of cutting rates and people start spending wont work anymore, Australia if its not careful could face what the US has where low rates devalued home prices.
With Pluto pushing on 12 degrees of Venus opposition, the government can't, no matter what run a surplus budget, as it tax revenue will shrink.
As the above aspect is triggered by the moon monthly you will see negative numbers coming out on the economy.
We will see state government particular in the North and the West feel abandoned by government with its stance on tax revenue.
Natural disasters will hit both of the above states.
Projections
The rest of the year and the first 6 months of 2013 Base metals will hold up better than precious metals.Copper,
Its after June that the negative aspects will start lining up on all sectors of the market.
The mining industry isn't going to be spared either.
Whether this is because of China slowing down or metal prices collapsing it remains to be seen.
Uranium has been the one shining light for a while, I wouldn't anticipate that to be spared either.
Companies drilling for metals will be wasting there time as material prices of the metals will make projects un viable.
The area where I see growth forward will be farming and grains.Since the high value in the dollar Australian grains have gone no where but stay home. With a lower dollar exports should start up again
In the banking industry I do believe that the majority of brokers will be left on the scrap heap with Computers executing clients trades.
Banks indirectly will become far more prudent in there lending practises as not to wear to much exposure on there books.This will mean that they ask for more collaterol.
Insurance companies will need to recapitalise many times during the year to pay for damages caused by storms.
While bankrupcy will explode in the second half of the year.
The property market has started to stall and this will continue.
While agents will talk of a pause, prices drop faster than they rise.
In the second quater of next year we will see signs of this.
Industries to avoid and invest.
Avoid
Banks, credit agencies and all debt collecting agencies.Spec stocks in the mining industry.
While the BHP and RIO's of the market will be ok with international exposure some of the fleas will get squeezed.
Look at stocks with serious debt exposure to attack, and hedge with blue chips.
Invest
Farming and grain industries, look for stamples every day companies ( Coca Cola, Westfield or Woolworths), regardless of what happens people still have to eat.
Cash will be king once again, those with it will be able to name there prices .
In regards to the general market I believe that the Australian market will follow the US with a 10% discount for the first 3 to maybe 6 months of 2013.
After that the market will just turn its wheels and fall, with internationals walking away.
In regards to Copper longer term I do believe US investment houses will try and corner the market there by prices rising , only to fool those who arent aware of whats going on.
A Copper ETF or something else not sure.
Forecast for A$ 88-90 December 2013
PLEASE BE ADVISED THAT THE ABOVE IS AN ASTROLOGICAL FORECAST.
NO COPY AND PASTE ON OTHER WEDSITES WITHOUT PERMISSION
THE ABOVE WAS WRITTEN BACK IN EARLY SEPTEMBER 2012AND HAS BEEN EDITED ON SOME FRONT FOR INVESTMENT PURPOSES.
DUE TO CLIENTS REQUEST
As always use this blog as an indicator to your own work.
Futures trading can produce huge losses and profits.
Ask your financial advisor more on the above .
Past performances are no guarantee for future performances.
With a Lunar Eclipse and some powerful negative astrology facing the Australian economy, I doubt that government will have the capacity to resuscitate the economy.
With the Reserve bank cutting rates for home buyers and the government taxing house holders more than ever before I struggle to see how the economy can stay afloat without major political changes which wont happen.
Regardless of who wins the next election the landscape which Australia has thrived on is flaking apart.
While government must lead for its people in the last 8 years its been the adverse.
Most countries tend to right up huge amounts of debt when they devalue there currency.
This way when the currency appreciates you can basically wipe of 20% of the debt because of the strong currency, its very simple economics.
But for some reason in the last 5-8 years this hasn't been the case.
Australia has gone about writing huge amounts of debt with a strong currency.
Should the currency fall by 5-10% which I believe strongly it will in the second half of 2013 then Australia's debt will increase by the same amount if not more when you had interest to the debt.
Followed with lower tax revenue for the next 3 years with consumers refusing to spend, mining taxes slowing, I doubt that the Reserve bank can cut rates to prop up the economy or government.
The old ways of cutting rates and people start spending wont work anymore, Australia if its not careful could face what the US has where low rates devalued home prices.
With Pluto pushing on 12 degrees of Venus opposition, the government can't, no matter what run a surplus budget, as it tax revenue will shrink.
As the above aspect is triggered by the moon monthly you will see negative numbers coming out on the economy.
We will see state government particular in the North and the West feel abandoned by government with its stance on tax revenue.
Natural disasters will hit both of the above states.
Projections
The rest of the year and the first 6 months of 2013 Base metals will hold up better than precious metals.Copper,
Its after June that the negative aspects will start lining up on all sectors of the market.
The mining industry isn't going to be spared either.
Whether this is because of China slowing down or metal prices collapsing it remains to be seen.
Uranium has been the one shining light for a while, I wouldn't anticipate that to be spared either.
Companies drilling for metals will be wasting there time as material prices of the metals will make projects un viable.
The area where I see growth forward will be farming and grains.Since the high value in the dollar Australian grains have gone no where but stay home. With a lower dollar exports should start up again
In the banking industry I do believe that the majority of brokers will be left on the scrap heap with Computers executing clients trades.
Banks indirectly will become far more prudent in there lending practises as not to wear to much exposure on there books.This will mean that they ask for more collaterol.
Insurance companies will need to recapitalise many times during the year to pay for damages caused by storms.
While bankrupcy will explode in the second half of the year.
The property market has started to stall and this will continue.
While agents will talk of a pause, prices drop faster than they rise.
In the second quater of next year we will see signs of this.
Industries to avoid and invest.
Avoid
Banks, credit agencies and all debt collecting agencies.Spec stocks in the mining industry.
While the BHP and RIO's of the market will be ok with international exposure some of the fleas will get squeezed.
Look at stocks with serious debt exposure to attack, and hedge with blue chips.
Invest
Farming and grain industries, look for stamples every day companies ( Coca Cola, Westfield or Woolworths), regardless of what happens people still have to eat.
Cash will be king once again, those with it will be able to name there prices .
In regards to the general market I believe that the Australian market will follow the US with a 10% discount for the first 3 to maybe 6 months of 2013.
After that the market will just turn its wheels and fall, with internationals walking away.
In regards to Copper longer term I do believe US investment houses will try and corner the market there by prices rising , only to fool those who arent aware of whats going on.
A Copper ETF or something else not sure.
Forecast for A$ 88-90 December 2013
PLEASE BE ADVISED THAT THE ABOVE IS AN ASTROLOGICAL FORECAST.
NO COPY AND PASTE ON OTHER WEDSITES WITHOUT PERMISSION
THE ABOVE WAS WRITTEN BACK IN EARLY SEPTEMBER 2012AND HAS BEEN EDITED ON SOME FRONT FOR INVESTMENT PURPOSES.
DUE TO CLIENTS REQUEST
As always use this blog as an indicator to your own work.
Futures trading can produce huge losses and profits.
Ask your financial advisor more on the above .
Past performances are no guarantee for future performances.
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