KRudd's $950 payout

[Blurr]

the demolishn of the so called lego as you put it is countries fighting for economic stabilty, security and fuel supply. This is a reaction to not being able to afford these or trying to protect what you have.

e.g. US Oil to Japan WWII
Japan on australia for security and global postion against the US

[Glen]

This could be slightly boring and opinionated so skip it if you wish.

There's also a quite reasonable argument which says that the US efforts in pummeling Iraq and Afghanistan have indirectly contributed to the severity of the prob in the US as they've spent bucketloads funding it. One of the issues in this whole situation is the massve imbalance in surplus's that have come about since the Asian Economic crisis. Economies formerly classed as developing have been running massive surpluses due to the impact of the resource boom and the prices they've been getting for resources. "Developed" economies, particularly the US and most of Europe have been running huge deficits.This is largely because things have been good and they've been spending up and racking up lots of debt. banks have had lots of money to lend to people who shouldn't have been able to get credit. The resources boom comes off, money dries up, it costs a lot more, lenders have loaned dodgey debt at fixed rates so their margins have disapperaed and hey presto banks go broke. This surplus flowing from the undeveloped to the developed countries have distorted currencies, interest rates and share markets so significantly that in hindsight a major correction was always going to happen.

The economies with the deficits are now struggling to get the money to fund stimulus packages to roll themselves out of the shit and so the cycle goes.

One thing for sure. It is going to get worse before it gets better. The rest of 2009 for us is going to be tough. At the end of it developed economies are going to be left with massive debts. We started in a good position with a strong surplus. Hopefully we will also be left with something to show for the massive debt eg The Hoover Dam or the Snowy Scheme as S & W points out. What is Australia going to be left with? Plasma tellies and a couple of new schools. Rudd and Swan are fucking this up, Turnbulls plot is no better either, tax cuts will do nothing. As much as the old Gov't was tired unfortunately we changed at precisely the wrong time.

At the moment my advice to my kids is get your debt down, save every cent you can, keep your job and try to make some money when it starts to recover.

Does the media have any impact on the above? Not likely. Happy reporting in the Aus press won't stop 20% of China's output disappearing unfortunately.

If you're in a secure job with a mortgage, you'll probably weather this OK. You'll punch the crap out of your debt for a couple of years and be able to buy some stuff real cheap as businesses try to pull cash in or go broke and liquidate shit eg Harvey Norman, Strathfield car radio etc.

Good luck

[MadKaw]

I am classed as single with no dependants. It's about time I got some of my tax dollars returned to me instead of subsidising other people's kids.

I'm sure these "other ppls kids" will have the same thought about subsidising you when you retire...

That aside, I'm with S&W and Glen on this, the $950 won't do much to "stimulate the economy". Those that need it will put it on mortgages and bills, those that don't will save it to get through 'the crisis" and those that are already on a permanent "government subsidy" will put it into the pokies, booze or other necessities...

Unless you have lost your job due to the downturn or are a self funded retirey, most ppl are already better of as the cost of living has reduced..

[Saki]

agree, lower living costs, perhaps ditch the GST (its a stretch!!) but madkaw i agree with ya!

[gpxpunk]

think its stupid idea, but what the hell giving back a tiny percent of my tax will go into a new front tyre, and just been told also for new leathers

[robracer]

think its stupid idea, but what the hell giving back a tiny percent of my tax will go into a new front tyre, and just been told also for new leathers

Dont loose the big picture here ......IF it goes ahead..... it is more or less a loan..... we will be paying back later probably in the form of taxes

[Richo]

Dont loose the big picture here ......IF it goes ahead..... it is more or less a loan..... we will be paying back later probably in the form of taxes

[the kid]

Dear o Dear . so much writen with such passion . Perhaps , just maybe , Kev could get a link to this thread and maybe get a grasp on an alternate feeling within the comunity .
This throwing money around like this is as usefull as sending the CFA out today with nought but full bladers .

[Burky]

businesses try to pull cash in or go broke and liquidate shit eg Harvey Norman, Strathfield car radio etc.

Good luck

in saying this Glen, many businesses will look at the divisions that are not making money and need to restructure. HN are in a totaly different kettle of fish to SCR. HN stores are in a great possition, yep some stores will close but look at the shops that will go and the locations they are in.

The cost of imported products has increased anything from 25-40%, Aus made will increase aswell but at maybe 10%. I work in the furniture industry and will be pushing the Aus Made product 1st. This boosts the industry we have here. Looking at the industry we do not have the trade qualified workers we need. Out of school IT is the go, nobody wants to do an trade in furniture manufacturing as the money is crap and the fact that there is not a massive amount of margins due to the imported lines out of china. Look at a dining chair China = $149 Aus Made = $300+. But at least we know what is in the Aus made product, i have seen what happens in China first hand, and have seen what can be in an Imported product.

After holding a show for the past week that has been a sell out Trade Only show for the Aus Made industry and having the "Australian Made Campaign" attend, we need to bolster the Manufactures/suppliers that we have here, no matter how small they are or how many staff are employed by those suppliers!
$950 on Aus Made goods, will be the best we may get at the moment

[aardvark]

I've got one thing to say, well, better make that two!

I agree with S&W.
I'll happily accept the hand out.

Personally I think it's a total cock up. S&W for PM!!

[6maniac]

Some will now go to the fire appeals.

[the kid]

Some will now go to the fire appeals.

Much happier to see gov money directed there . All of it . Give every CFA volly and all those who are chipping in making sandwiches and cuppas the 9 hundred .
And hand out some to the generous people offering housing , bedding etc .

[gpxpunk]

think its stupid idea, but what the hell giving back a tiny percent of my tax will go into a new front tyre, and just been told also for new leathers

Dont loose the big picture here ......IF it goes ahead..... it is more or less a loan..... we will be paying back later probably in the form of taxes

Very true.

[Slow and wobbly]

Sorry.
I may have misinterpreted.
I wont edit previous post I'll let it stand. I reacted to what I saw and interpreted.
Sorry if you meant otherwise Ron.

[6maniac]

No offence taken, Adrian. I appreciate that everyone in the affected areas ( and those who have friends and relatives there, also ) are going through a very tough time. I hesitate to ask, but do you have news of your mate at Kinglake ?