Hi Readers
Today we got the CPI numbers for Australia, coming in at 5.6% below expectations.
So what has really come down?
Fuel prices have come down 10% but that's it .
Utilities have increased, heating costs have increased, vegetable prices have increased, mortgage costs have increased.
So yes retail sales of electrical goods are down but there is still a waiting period for vehicles.
So how did the CPI number drop, got to love the governmental statistics people.
Now lets really look at what's really going on as many of you don't seem to understand.
Interest rates are at breaking point for every government world wide. There is no way they can pay the capital let alone the interest on the debt they have accumulated.
We are told countries have commodities and that there value means that they can underwrite debt but the commodity is valued far greater than what its really worth.
8% of people have paid there properties off in Australia. So what we are seeing is that the action on the RBA is affecting 92% of the working population in Australia.
So what we know is that commercial banks in Australia are at breaking point, while they are play the game, that's all is fine and business as usual, but behind the scene's banks have expressed to the RBA that mortgage holders are at breaking point. There are no savings in offset accounts there are no more parent handouts. All of a sudden inflation drops yet no one can feel it or see it.
So we turn the heat down as the frogs are about to jump out of the pot. Similar to what the (Fed pause) and all these fancy words to not trip algorithm selling in the bond and stock markets. They are aware what's going on, commercial banks are informing them. So until we slide into recession world wide inflation isnt going anywhere readers.
There is no such thing that a slowdown will settle inflation, but todays economist believe in tooth fairies and Easter bunnies. Its called deflation, but believe the rubbish your being told by media commentators who have no idea of finance.
So while we are going to have some fake inflation numbers for the next month or two its just going to prolong the pain we have to go through.
As always use the above as an indicator to your own work.
The above is based on Financial astrology
Ask your financial advisor on more on the above.
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