Rates rise when the economy booms how can you not know this?
Rates fall to promote growth and they rise to slow growth. The RBA are tasked to do this is maintain inflation below a certain level.
You have to hold a ridiculously poor view of other people in order to support your world view.
The truth is that in Australia, at the moment people are very cautious with their money, they are saving at unprecedented levels and spending is still down. There are far less fools throwing their money away on buying homes for themselves than there are fools sitting around complaining prices are too high to buy when they are just reaching peaks last seen in 2007 in many places.
Ha ha you posted a "make up your own statistics " plot posted on macrobusines with no credibility at all outside a money making internet blog.
Here is the real chart
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Whats with the random links? Are you attempting to muddy the water? It was I who showed the ABS data and you who showed a piece of made up crap from a two bit website.
Show me anywhere else that your silly chart was posted. It was a made up piece of garbage removing savings mechanisms to paint a sad story to seriously mislead kids. This website takes money from young people to sell them fantasies and advise them how to throw their financial future down the drain.
If I were you I would not trust anything from that source.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
And why shouldn't int include super and principal payments?
The savings rate has always included principal payments and contributions to pension plans.
Next you'll be suggesting that snow should be removed from precipitation because it isn't rain.
Indeed. The long period of decline on the left hand side of Pauk's chart is strongly correlated with the progressive introduction of super (1983 - 92) and the ratcheting up of the SG contribution rate (1993 - 2003).
Adding super back into the chart wouldn't completely negate the 1983 - 2003 decline, but would greatly lessen its apparent slope. And, it would highlight the dramatic jumps in the savings rate since 2006.
There has certainly been tax incentives to save via super over the past few years so it makes no sense to exclude this type of savings at all.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Whats with the random links? Are you attempting to muddy the water? It was I who showed the ABS data and you who showed a piece of made up crap from a two bit website.
Show me anywhere else that your silly chart was posted. It was a made up piece of garbage removing savings mechanisms to paint a sad story to seriously mislead kids. This website takes money from young people to sell them fantasies and advise them how to throw their financial future down the drain.
If I were you I would not trust anything from that source.
Paul - address the points raised by skamy, miw and sober above.
When you add back the genuine savings in Superannuation funds (about $1.7 trillion) that curve disappears and your whole point is gone. Why haven't you accounted for that.
Any expressed market opinion is my own and is not to be taken as financial advice
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