Hi Readers
We continue to see the gas lighting in the media of the economy, regardless of where you live your being told that everything is going great yet your out there and struggling to make it work.
Whether your in business or in debt with mortgage repayments the bottom line is it just doesn't work.
The reason it doesn't work and it will never work is the size of the mortgage is so big that its never enough, your wages have only gone up 8% yet the cost of living has increase 27% on top of any debt.
In business your finding it difficult to pass on the cost as you fear loosing the work and the list goes on.
For workers here in Australia they just got a 3.5% increase in the minimum wage. So tell me how can you make it work when everything in creep crawling higher.
For those who don't know what creep crawling is . Its when supermarkets on a weekly bases increase the prices of products by 2-4 cents per week on items across the board. Once again it doesn't matter where you live, its happening across the board.
Example a tin of tuna 150g was $1.15 on the first of May, as of the 2nd of June the same tin and brand is now $1.25.
Or a packet of corn chips (175g)was $3.25 on the first of May as of 2nd of June same packet is $3.45.
So this is what we call continue crawl inflation. Where products just keep rising regardless of what your told, not by the company making the products but the retailer looking to bank on the current circumstances.
Yes people we are in a stagflation environment, the media wont tell you as it doesn't suit the governments narrative. Whether your in the USA, Canada, Australia or the UK its the same everywhere.
In Victoria alone business bankruptcies at up 500% in the first quarter. In fact there where more business declaring bankrupt in the first quarter this year than all of last year.
That should tell you where the consumer is at, another example I was told was from a cafe that increase the costs of coffee from $6.50 to $7 to cover the loss revenue in food, he now finds himself down 30% in coffee's since the price rise.
For those looking to purchase property just be patient. Once again regardless where you are governments are all playing the same tune and its not to hard to work out that its not working.
Governments have brought in immigrants way beyond sustainable levels to force them to prop up the housing market, but the people with money haven't come, and the people that they brought in are broke bums, yes cruel and I make no apologies for it as its forced so many people into poverty.
The bank of mum and dad are tapped out and most who helped out are now paying the debt. Much to the delight of the banks.
Banks now are looking at serviceability not just the down payments so with that most people cant service million dollar loans, at 8% so housing, prices will come down.
I think of it like a trawler boat collecting all the fish, that's what happened in the last 7 years with property especially here is Australia. Fire sales will come as more and more pressure is coming on with tax departments cracking down on unpaid taxes, and banks starting to become hostile to helping out property investors with interest only loans as there has been a default, its obvious that things are getting worse much quickly than banks had anticipated.
For those of you who don't know, banks are in the business of derisking loans, the less risk of default the more they can fractional reserve. The more chance of loan default the more the bank is exposed to losses.
For the DXB.ax investors who sold out there shares at 43 cents and are waiting for a correction, Unless we see a crash in the stock market the stock is going to continue rising.
The stock finally is moving on fundamentals and in a down market will hold and rise 5% per day. If stock Market crash yes it will go down but not as much as some of you think it might.
If the markets is stable then price will trade much higher.
As I have said to some of you can still buy it you just have to pay 55c, 75c or $1, bottom line is you need to do what's right for you.
I have already given my view on what I believe its worth so until then I'm all good.
