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12% real decline from peak for Perth house prices
Topic Started: 15 Dec 2016, 08:08 AM (8,466 Views)
Jimbo
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Sydneyite
18 Dec 2016, 05:27 PM
And whatever the AUD/USD exchange rate might have been, the overnight cash rate for $AUD in the Australian financial system was always exactly what the RBA set it to be.
Yes, after all things are considered The RBA does set rates. The major driver being the value of the AUD against the global reserve currency.

Setting the rate does not mean that the RBA controls the rate.

It is one of the mainstays of the bull ship that the RBA has their back. That the RBA will not let their ship sink. That the RBA is in complete control.

You cheer the possibility of multiple US Fed rate rises at the same time as praying for further cuts from The RBA.

Good luck with that.

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Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Rufus
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Jimbo
18 Dec 2016, 06:22 PM
Yes, after all things are considered The RBA does set rates. The major driver being the value of the AUD against the global reserve currency.

Setting the rate does not mean that the RBA controls the rate.

It is one of the mainstays of the bull ship that the RBA has their back. That the RBA will not let their ship sink. That the RBA is in complete control.

You cheer the possibility of multiple US Fed rate rises at the same time as praying for further cuts from The RBA.

Good luck with that.

Posted Image
In December 2015 the US Fed increased rates, since then the RBA reduced rates twice.

In December 2016 the Fed again raised rates. I won't be surprised if at the next RBA meeting in Feb they again reduce rates.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Jimbo
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Rufus
18 Dec 2016, 06:37 PM
In December 2016 the Fed again raised rates. I won't be surprised if at the next RBA meeting in Feb they again reduce rates.
I don't dispute that. The outcome will be a weaker AUD which may well be an aim of The RBA.

Still, there is a limit to what The RBA can do with interest rates and that limit is set by The US Fed being the issuer of the worlds reserve currency.

The RBA does not control interest rates. It simply sets them in response to economic drivers, the major one being the value of the AUD in relation to the worlds reserve currency.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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newjez
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Sydneyite
18 Dec 2016, 05:27 PM
Bullshit. The dollar has been both quite a bit lower and quite a bit higher than it is right now, in the last 12 months, when the fed neither raised or lowered interest rates. And whatever the AUD/USD exchange rate might have been, the overnight cash rate for $AUD in the Australian financial system was always exactly what the RBA set it to be.
Also, raising interest rates isn't very effective at combating exchange rate induced inflation. It is often just an extra hammer blow to the knuckles of the economy, rather than providing relief. Better just to grin and bear the exchange rate inflation until it subsides.
Jimbo
18 Dec 2016, 06:22 PM
Yes, after all things are considered The RBA does set rates. The major driver being the value of the AUD against the global reserve currency.

Setting the rate does not mean that the RBA controls the rate.

It is one of the mainstays of the bull ship that the RBA has their back. That the RBA will not let their ship sink. That the RBA is in complete control.

You cheer the possibility of multiple US Fed rate rises at the same time as praying for further cuts from The RBA.

Good luck with that.

Posted Image
The rba is only worried about domestic inflation. You won't get a rate rise in the current environment jimbo. Pray all you want. Just because the aud gets trashed, even if it causes inflation, rates won't rise unless the domestic economy demands it. For now the domestic economy is near recession. Be happy with that.
Edited by newjez, 18 Dec 2016, 07:50 PM.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Trollie
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Jimbo
18 Dec 2016, 06:22 PM
Yes, after all things are considered The RBA does set rates.

does not mean that the RBA controls the rate.
Posted Image
Jimbo
18 Dec 2016, 04:56 PM
I know you are thick Dolly, but that is taking the biscuit.

Look at the graph and notice the drop in value of the AUD at the same time as the 0.25% Fed cash rate hike.

The AUD is now worth less than it was before the hike.

The RBA did nothing, but another countrys central bank impacted on the value of the currency issued by the RBA.

The RBA can only continue to do nothing up until the point that it is forced to defend the currency it issues.

It will have to do this regardless of local economic conditions.

Therefore, the RBA does not control interest rates.






No thick would be you thinking we aren't on to your bullshit :re:
Edited by Trollie, 18 Dec 2016, 08:03 PM.
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Jimbo
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newjez
18 Dec 2016, 07:47 PM
Pray all you want. Just because the aud gets trashed, even if it causes inflation, rates won't rise unless the domestic economy demands it. For now the domestic economy is near recession. Be happy with that.
I'm not praying for anything. I don't give a toss what the RBA does. I haven't borrowed any money for nearly 20 years and I will never borrow any money ever again.

The RBA can drop rates as much as they like, it won't do anything to help the Perth market just like the last few reductions did bugger all.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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zaph
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Jimbo
18 Dec 2016, 06:22 PM
Yes, after all things are considered The RBA does set rates. The major driver being the value of the AUD against the global reserve currency.

Setting the rate does not mean that the RBA controls the rate.

It is one of the mainstays of the bull ship that the RBA has their back. That the RBA will not let their ship sink. That the RBA is in complete control.

You cheer the possibility of multiple US Fed rate rises at the same time as praying for further cuts from The RBA.

Good luck with that.

Posted Image
Bing!
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Trollie
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Jimbo
18 Dec 2016, 08:13 PM
I haven't borrowed any money for nearly 20 years and I will never borrow any money ever again.
And you're poorer for it.

The reality is you should have just done what the government and RBA want you to do and borrowed like a drunken sailor and purchased property in capital cities.

If you had of done so you'd be arguing with me from your mansion in Vaucluse instead of some suburb in Perth that comes with a warning about road rage and meth abuse.
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Jimbo
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Trollie
18 Dec 2016, 09:00 PM
The reality is you should have just done what the government and RBA want you to do and borrowed like a drunken sailor and purchased property in capital cities.
No, because in my opinion it is morally wrong to profit by competing with those less well off for an essential item so that I can price them out and then rent it to them.

There are other far more productive ways to make money.

Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Matthew
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Jimbo
18 Dec 2016, 06:52 PM
I don't dispute that. The outcome will be a weaker AUD which may well be an aim of The RBA.
It is the stated aim of the RBA in their published minutes. It is also what, you claim, prompted you to sell your unencumbered PPOR and rent to take advantage of, with the second bit (the 25% fall in price by November 2014) the missing piece of the puzzle that would have made you the only man ever to pick both top and bottom of market.
newjez
18 Dec 2016, 07:47 PM
For now the domestic economy is near recession. Be happy with that.
Why would any sane person be happy with that (other than to claim they picked it on a forum like APF)?

A recession will have a negative impact on every family member you have in Australia in one way or another. Why would that make you smile?

Do you hate them? Or are you just that smug?
Jimbo
18 Dec 2016, 10:53 PM
No, because in my opinion it is morally wrong to profit by competing with those less well off for an essential item so that I can price them out and then rent it to them.
Yes and in the opinion of the Catholic Church it is morally wrong to be homosexual yet they have a long proud history of sexually abusing male youth.

And so keen are you to prove your "point" you elect pay rent to a person who will inevitably price you out of the market.

The hypocrisy will sail over your head, but does not change the fact you are a gigantic hypocrite.
Edited by Matthew, 18 Dec 2016, 11:45 PM.
My only hope for my three boys is that they turn out nothing at all like Chris.
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