Australian Economic Future- What to expect?

Teleloans Sept, 2011

Video 2 - How will it affect Australians?

Video 3 - How to Prepare

I think the important point that Mr Swanepoel forgot to mention was to store food and water.  Yes, I totally agree about investing in precious metals to protect ones wealth, but you can’t eat your precious metals or your cash.

Food and water is what we all need for survival.  Inflation will most definitely hit, if not hyperinflation (in the case of the US and EU countries), and the price of food will be more expensive as compared to today’s prices.

With the threat of Iran closing the Strait of Hormuz to the Western world, this will definitely spike the price of oil, which means gas at the gas pump.

The price of petrol at the pump could rise anywhere from $2-6 a litre, overnight! That is the talk in the US at the moment. What price would Australians be paying?

Just imagine what these oil prices would do to the  trucking businesses who deliver our food to the supermarkets?  If they can’t afford the exorbitant petrol prices, what do you think will happen to the price of food?

I definitely agree with Mr Swanepoel to have cash on hand, in case of a bank run, to invest any extra cash into precious metals – but, in my opinion, we also need to store food items and water supplies for your families.  With thousands of Australians losing their jobs already this year, having to fork out money to buy food at higher prices, may already be a stress that some families could do without.

Like, I have been saying for a while now, we can prepare ourselves financially with cash and precious metals, but if we don’t have enough food and water in our homes to feed and sustain our families, all other preparations will be in vain.

As Mr Swanepoel alluded to, it’s better to be prepared, and either way, if things don’t turn out to be bad as predicted, (although, I believe that it will) then you haven’t lost out, in any way.

Take heed, have a look around and find out what is happening in the EU at present, keep an eye on Greece, the US and Chinese financial situations, and make the necessary precautions to protect your financial best interests and your families well being.

Check out some of the links on the my blog as you will find a lot of helpful information and material that can assist in educating you, your neighbours and friends….material that you won’t hear or see on television, that’s for sure!

House Investors to Lose Interest

National Australia Bank finance chief Mark Joiner yesterday said the property market was fully valued and likely to languish.

“I don’t think property can go up from here,” he said.

“It’s at the top of the range on affordability. It’s well out of line internationally.”

House Investors to Lose Interest

Why Australia is set to follow US path of house price doom

Money Morning reader David wrote us an interesting note about the fall of house prices in the UK:

“I remember living in the UK sometime around 2006 – 2007 and house prices, like Australia now, were overvalued.  As soon as property went on the market they sold at crazy prices…

“Just as you predict here in this email house prices crashed about 18 months after their peak.

“The media blamed it [falling UK house prices] on the world financial crisis, which did have an impact but they were already on their way down.

“So many people forget a house is only worth what someone is prepared to pay for it.”

As time passes there’s always the tendency to compress events.  Looking back now, it’s easy to think all the economic problems started in September 2008… around the time Lehman Brothers collapsed.

But that’s not the case at all.

For starters, the stock market peaked in October 2007.  By the end of September 2008 – before Lehman collapsed – the Aussie stock market had already fallen 27% from the peak…

An article definitely worth reading…find the rest at this link.

Why Australia is set to follow the US path of House price doom

Australian Housing Bubble – Steve Keen vs Chris Joye FEB 2011

Interesting to note the body language of Mr Joye during this entire debate. Will be interesting to see whether the Government is going to introduce another scheme to entice First Home Buyers or even re-introduce the $14,000 grant.  Only time will tell..