Category: Economic Data

Uncertainty Rules!

Federal Reserve Chair Jerome Powell, in his second day of congressional testimony, told the Senate Banking Committee that the economy was in a sensitive phase.

“In this very sensitive time at the moment, it’s important for us to be careful in the way we conduct policy simply because things are so uncertain and we don’t want to add to that uncertainty,” he told Senate lawmakers on Thursday.

Federal Reserve Chairman Jerome Powell said the upward pressure on inflation was expected to continue for “at least awhile” and flagged the risk that the Ukraine crisis will prolong supply chain problems, which have been a key driver of inflation.

“It is not going to help at all with supply chains, because ships are not being offloaded,”

Fed Chair Jerome Powell noted that the surge in energy prices will likely spill into inflation, and if that shift proved to be lasting, it could put upward pressure at the “margin” to longer-term expectations.

Markets continue to be unsettled as investors pore over developments between Russia and Ukraine and wrestle with the economic outlook against the backdrop of higher rates and perkier inflation.

“Volatility is going to continue to be around and an issue,”

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More First Time Home Buyer “Bribes” Doesn’t Help Anyone…

More bribes for First Time Home Buyers, which actually work AGAINST housing affordability, and are another example of “unnatural acts” to keep the bubble going.

The Tasmanian state government will take over from “the bank of mum and dad” to help young home buyers achieve their dream of owning a place of their own.

The revamped Housing Market Entry Program will mean potential purchasers can buy a home with as little as a two per cent deposit — and the government will kick in up to $200,000 of the purchase price as an equity contribution.

It would mean an eligible applicant wanting to buy a $500,000 home could do so with a deposit as low as $10,000 and a mortgage of $300,000.
“The government will actually provide people with the opportunity to have the government as an equity partner, in the first home, either build or purchase.”

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Today’s post is brought to you by Ribbon Property Consultants.

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Buying property, is both challenging and adversarial. The vendor has a professional on their side.

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Lehman Weekend 2.0?

We should expect volatility to amp up Monday and is already heading for its biggest two-month surge in a year, according to a gauge of cross-asset expectations for price swings in Treasuries, U.S. stocks and global currencies. Treasuries are leading the way.

But this potentially is another Lehman moment, as the U.S. and its European allies stepped up their response to the escalating conflict as Vladimir Putin ordered Russia’s military advance to proceed, announcing plans to sanction the central bank in Moscow and cut off various Russian lenders from the critical SWIFT financial messaging system. That comes on top of earlier moves against the country’s biggest banks and restrictions on the nation’s bonds. Russia’s currency has fallen to a record low amid the current crisis.

As a result, it is likely that all thoughts of QT and inflation control will be swamped by the potential need for liquidity and Central Banks will do what they keep doing.

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

Should We Buy The Dip?

The simplistic cries of “its all over” for markets is just not aligned with what has happened, with a bounce in the US markets, following Biden’s comments. Many bought the dip – but does that make sense – and is Bitcoin a risk shelter? But, do not panic, in times like this, cash is NOT trash!

Go to the Walk The World Universe at https://walktheworld.com.au/

Welcome To The Underclass!

From The Conversation: https://theconversation.com/australia-is-creating-an-underclass-of-exploited-farm-workers-unable-to-speak-up-177063

There are currently about 95,000 asylum seekers in Australia, about 30,000 of whom have had asylum refused at both the initial and by the Administrative Appeals Tribunal stage and are not legally able to work.

Many work on farms, including those not legally able to.

They can never complain about their treatment and have to accept whatever work they can get under whatever conditions as those who have been refused asylum have no legal right to work.

The latest edition of our finance and property news digest with a distinctively Australian flavour.

Go to the Walk The World Universe at https://walktheworld.com.au/

The ProBuild Canary!

One of Australia’s largest construction companies is reportedly in difficulty and many projects have stalled while contractors might lose thousands. Was this just bad management of one company or a signal of wider strife across the industry, as supply chain disruptions, costs and demand all impact the sector?

Those who watch our regular shows might not be that surprised!

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

Social Housing’s Impossible Mission…

Victoria set to bring in social housing ‘contribution’ The state will introduce a new Social and Affordable Housing Contribution on certain developments from July 2024, it has been announced.

The Andrews government has announced that, from July 2024, all newly built developments with three dwellings or more, or of three or more residential lot subdivisions, will need to contribute 1.75 per cent of the market value of the completed project to the Social Housing Growth Fund.

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

The Hidden Hand Of Digital Control

I have been discussing the rise of Central Bank Digital Currencies over the past few years, and we know that in Australia the Treasury is now actively exploring the implementation of a digital Aussie Dollar for consumer use. This mirrors efforts underway in other countries, including both the UK and USA.

Canada Deputy Prime Minister and Minister for Finance Chrystia Freeland announced the government is broadening the scope of the country’s anti-money laundering monitoring and terrorist financing laws to cover crowdfunding platforms and the payment service providers they use. “These changes cover all forms of transactions, including digital assets such as crypto currencies,” she announced during a recent press conference. To underscore the point, the Canadian government made it clear on Monday that it would target cryptocurrency alongside traditional transactions.

But consider how much easier it would be to control the access to money if it was sitting in a Central Bank Digital Currency Account. Potentially total transparency, and control.

The Canadian experience underscores for me the importance of safeguarding our financial system, and we should be aware of the grave risk which exists from those in Government and the Security Services which wants more direct control.

Go to the Walk The World Universe at https://walktheworld.com.au/