Australia's "Tulip Mania" About to Crash; 44% Jump in Property Listings Proves the Proposed Housing Shortage is Gargantuan Myth; Playable Actions
Australia's household debt to disposable income ratio
"The RBA’s figures show that as at March 2009 ”around 20 per cent of banks’ total liabilities were denominated in foreign currencies.”
This percentage has remained relatively stable over time, but the raw numbers involved ballooned through the credit boom, to the point where the banks’ net foreign currency exposure is more than $300 billion.
few people fully understand how dependent our banks are on foreign debt and the mechanism by which they mitigate their exposure (through a series of swap contracts designed to insulate against currency and interest rate movements). And that brings us to the key issue.
Should future convulsions in the global financial markets send any of the institutions on the other side of these contracts to the wall, our banks would become more exposed to the harsh winds of the international financial markets."
The Australian people have had it good for at least 40 years, minor recession's and corresponding booms, very few Australians realise that the actual standard of living has over that period decreased requiring the work of two people to maintain status quo with the rest. Real wages have not gone up, they have gone down.
Its now 2011 and Australia faces two internal challenges the first is our long running and now collapsing Real Estate Boom. Property prices had been going up constantly for decades and our Banks have been more than accommodating in financing this speculation holding up to 60% of their assetts in Mortgage related products.
As of this year the 'Boom' has slowed and now turned homes are not selling, Auctions are failing, this is not the news you hear on the local Media. Our R/E is estimated to be 60% overvalued and when the Inflation coming down the line hits we are in deep S#$@. The Oil price is an external factor that is now adding to stress that the average overextended home owner is already under.
Most people who bought "Investment " property bought into a loosing bet from day one. The Banks financed up to 110% before the GFC and now are offering 97% to customers they are familiar with. Problem for the new crop / the last lot of buyers who got in at the Top Of The Market. For these people there is no "Greater Fool" out there to buy the properties at a price that will cover the losses from depreciation and expenses.
We will not avoid a collapse in our R/E market, our personal debt (not the Government Debt) is higher than the Average America's debt burden on Credit cards and Mortgages.
When the Home loans and Retail / Commercial property market collapses so will the Australian Economy, our Banks will be screaming for bailouts and these will not be forthcoming unless the Government decides to print Money. Even without external events Australia has a Black day coming in the "commodity that always goes up".
Lucky we have our Chinese friends buying our Minerals etc, will this Boom continue forever...5 years? 20 years? I think not, China has been pushing its economy at Maximum growth and billions of cubic meters of empty Cities are one result, another is the Billion Chinese that have not got a spot in the sunshine, the $2 a Day workers that provide us with so much "Stuff" we have bought. When the Western Nations are struggling to fill their Petrol Tanks and pay Mortgages then who will pay for China's growth.
After a US default on its currency / Debt problem the Chinese will be short a cool Trillion Dollars in lost assetts tied up in the US Treasury Bills, Notes not even PIMCO will buy, the US Treasury is the primary buyer of US Debt. Sooner than later the World will realise the US Dollar is over. An announcement of more Quantitative Easing will tell even the stupidest Investor that any American paper is worthless. Not to forget the probable fate of the Euro.
For the Elites of the world to finalise plans that have been on the board for a Century the worlds disparate currencys have to go and be replaced with a new World Order Dollar.
The events in Saudi Arabia on the so called "Day of Rage" will tell us a lot as the future will come to crystal focus, Oil to $200, and the the real trouble begins.
Wake Up Australia, its now begun, our time of joining the rest of the world in trying to buy the next meal.
Revolution is only ever 7 Meals away, people so insulated, arrogant and obscenely rich have plans for all of us.....then again its all just Conspiracy isn't it.