Hi readers
First a macro view of what's going on . Not saying I know more than you but it's good to get an idea of what others see.
Last year I wrote a post about debt in Australia and how the country would pay dearly for the stupidity in writing debt with a higher currency.. Well it's pay up time Australia!!
Debt is become a serious issue even tho the country and it's people don't know it yet.
Treasury knows full well that's it got huge problems.
With the falling dollar the debt in just continue to increase and the panic button hasn't been hit yet but where not far off it.
Tax receipts are down and the country's government are talking excuses.
Yet the truth is debt is out of control.
A budget which has never passed the senate . ( so what budget) !
The kicker will come when an excuse will be use to raise rates. ( and it will)
To help pay debt and protect the dollar. I'm thinking at the 77-78 area but we will see.
Now the economy is in a tail spin and next year the astrology on the country is bad in fact very bad.
Those who believe buying property or share in Australia is cheap , wake up and get out before you loose another 20% more.. As you have already lost 20% from currency devaluation.
Unless your a day trade I don't recommend doing anything in Australia.
Now the US is another thing .
The US wrote up so much debt when it currency was lower that know its gain over 12% just on currency valuation.
It's for this reason the US will continue to do well and be able to spend more money on improving the country's infrastructure. This will be the best investment the government does for the next 5 decades.
But if it throws those gains into going back to war then it will be for nothing and the next 3 generations will suffer for it.
Europe
Europe is interesting because there is all of Europe which is broke and then there is GERMANY .
A lower euro will increase German manufacturing and exports will killing the rest of Europe with its high levels of debt. They have all dipped into the EU for help and Germany gave them the money. So paying back now is going to cost more.
Arab nations
We are going to see $40 oil wether you like it or not.
Commodities are still a good 30% over priced so they can come down more.
Yes I'm talking about metal, oil and, Precious metals.
In regards to grains the beauty there is people still have to eat, the problem on the other side is the bio fuels industry could be finished.(ethanol )
How much of that will flood the grains market don't know ..
As have no idea of what Amounts are used for ethanol.
All the best.
First a macro view of what's going on . Not saying I know more than you but it's good to get an idea of what others see.
Last year I wrote a post about debt in Australia and how the country would pay dearly for the stupidity in writing debt with a higher currency.. Well it's pay up time Australia!!
Debt is become a serious issue even tho the country and it's people don't know it yet.
Treasury knows full well that's it got huge problems.
With the falling dollar the debt in just continue to increase and the panic button hasn't been hit yet but where not far off it.
Tax receipts are down and the country's government are talking excuses.
Yet the truth is debt is out of control.
A budget which has never passed the senate . ( so what budget) !
The kicker will come when an excuse will be use to raise rates. ( and it will)
To help pay debt and protect the dollar. I'm thinking at the 77-78 area but we will see.
Now the economy is in a tail spin and next year the astrology on the country is bad in fact very bad.
Those who believe buying property or share in Australia is cheap , wake up and get out before you loose another 20% more.. As you have already lost 20% from currency devaluation.
Unless your a day trade I don't recommend doing anything in Australia.
Now the US is another thing .
The US wrote up so much debt when it currency was lower that know its gain over 12% just on currency valuation.
It's for this reason the US will continue to do well and be able to spend more money on improving the country's infrastructure. This will be the best investment the government does for the next 5 decades.
But if it throws those gains into going back to war then it will be for nothing and the next 3 generations will suffer for it.
Europe
Europe is interesting because there is all of Europe which is broke and then there is GERMANY .
A lower euro will increase German manufacturing and exports will killing the rest of Europe with its high levels of debt. They have all dipped into the EU for help and Germany gave them the money. So paying back now is going to cost more.
Arab nations
We are going to see $40 oil wether you like it or not.
Commodities are still a good 30% over priced so they can come down more.
Yes I'm talking about metal, oil and, Precious metals.
In regards to grains the beauty there is people still have to eat, the problem on the other side is the bio fuels industry could be finished.(ethanol )
How much of that will flood the grains market don't know ..
As have no idea of what Amounts are used for ethanol.
All the best.
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