Where does Australia stand in the current economic situation?

13 09 2010

Ive been following some well known analysts and economist worldwide closely these past months, and their predictions have not been very encouraging when it comes to the economy.

It has been interesting to see how the Australian economy has been able to withstand some of the direct affects of the 2008 downturn, as compared to other nations worldwide.  A higher dollar, positive growth, lower unemployment figures for this quarter.

But the question is – how long is that going to last?  What is around the corner that we don’t see?  How well is the Chinese economy really doing?  How accurate are the unemployment figures for the US?

Australia was fortunate enough not to experience the full extent of the recession in 2008 as compared to other countries, however  it does not mean that it won’t be affected if/when the Chinese Real Estate bubble bursts or there is a double dip in the US economy.

Three sectors that contain stocks that have benefited most from the China housing boom are industrials, energy and materials. These stocks make up about 40% of the entire Aust stockmarket. Because of huge demand from China for Aust resources, what is going to happen when the Chinese demand slows or even ceases?

http://www.businessinsider.com/the-chinese-real-estate-bubble-is-the-most-obvious-bubble-ever-2010-1

Economists and trends analysts are predicting a stockmarket crash before the end of the year. If the Aust. economy is reliant upon China’s imports of its resources, what is going to happen when everything comes crashing down?

Bottom line is – we should be doing our own research and due diligence to find out what is happening in the world today economically, and how it affects our everyday lives.

Dont rely on mainstream media – they wont tell you what is really going on in the world – until its too late. Aust wont be immune to this next recession, in fact, it will affect Aust. in a big way because Aust is a commodity/resource focused country. Take the demand away, and what have you got?

Bloomberg Businessweek wrote an amazing article about China and its demand on Australian mining resources and what will happen to Aust when it all goes bust.

Here are some things happening around the world that you may not see on the 6 o’clock news:

Russia’s PM Putin has ceased all exports of wheat out of their country until sometime in 2011.. What could this potentially do to the price of bread, pasta and other wheat products?

Australian farmers are bracing themselves for a plague of locusts:
http://www.abc.net.au/news/stories/2010/09/02/3000537.htm

Zimbabwe Food Shortages:
http://www.zimbabwemetro.com/headline/famine-early-warning-system-says-food-shortages-by-september/

US Food Shortages:

http://www.marketskeptics.com/2009/12/2010-food-crisis-for-dummies.html

Natural disasters affect the worlds imports/exports and economies.

The failed banks in the US:
http://www.fdic.gov/bank/individual/failed/banklist.html

Could this happen in Aust?  Do you know how safe your superannuation is? Do you even know what investment option your provider has your savings in?

Wouldn’t it be a good idea to call your superannuation provider and find what investment option your super is in…most people have their super in a default option, which can be anywhere up to 90% in Aust shares, international shares and property. So if the market was to crash, as predicted,  there goes 90% of your super.

People trying to withdraw their money from their bank accounts and the banks don’t have enough money:

http://shadow.foreignpolicy.com/posts/2010/09/03/tackle_corruption_before_a_kabul_bank_bailout

All of this may seem a world away for us here but it does not mean that it can’t affect us in some way or another.

If there was to be a natural disaster in your country – how prepared would you be?

If/when oil prices reach $150-200 US a barrel, what will we be paying for petrol, food, electricity?  Have you ever thought of your life today without ELECTRICITY?  Petrol prices are on their way up.  Have you thought of how these increases will affect your life today? Businesses and large companies that provide our everyday necessities rely on PETROL to operate from day to day.  When oil prices rise, in turn petrol prices rise – what else do you think will rise?  The answer is EVERYTHING!

Keep an eye on oil prices people – when they hit over $100 US  per barrel, its time to get your household in order.

Financial hardship is what is going to hit families hard in the coming months (if not already).  Although we may not be able to stop it from happening, we can prepare our households.

My post is to merely encourage readers to take a good look around and evaluate matters for yourselves and your families.  It’s not about spreading doom and gloom, but taking off our rose coloured glassses every now and then and seeing things as they are.

On a biblical front, God spoke to Noah and he built the ark that saved his family.  God spoke to Joseph about storing wheat and preparing for famine – and what did he do?

My question is what are we doing today to prepare ourselves for tomorrow? The signs and signals are all around us – look up and see.

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Slight Change in Direction – The Current Economic Situation

13 09 2010

Those of you that have been following my blog will know that Pasefika Life is about empowerment, education and about assisting the community through knowledge and application of that knowledge.

These past months I have been busy researching , reading and educating myself on World Politics, the current economic situation worldwide, recessions, the depression of 1929, the illumanti, the New World Order and the sharemarkets and how it affects our everyday lives.

My day consists of prayer, watching worldwide mainstream media and reading independent worldwide newspapers online.

What does this all have to do with the subject of my blog and Pasefika Life – you may well be asking?

Everything.  What we must remember as citizens of this world,  the powers that Govern our nations and the decisions that are made in the high places, determine how we live our everyday lives.

Where we live, how much we earn in our jobs, what schools our kids attend, how much money we spend on groceries and so much more.

And if we don’t make a conscious effort to educate ourselves on what is happening in our local communities, our states and in our Governments, the world can pass us by and we will be none the wiser.

The content of my posts will be taking a different direction in the coming months…Some of the information might be depressing, scary and little bleak.  But understand, that I am an optimistic, positive person by nature – and I am also someone who is real.

I share what I share in the hopes that it may stir within you, the urge to dig deeper and search.

Don’t take my word for it – find out for yourselves.  Discuss matters with your neighbours, family members and colleagues.

Let’s challenge ourselves to think outside the square and venture into topics that may not have been subjects of conversation or interest before, but let’s also be open minded in our thinking and try to see how all these things can affect us in our everyday lives today.

Understand, that I’m not going to push my idealisms, thoughts and opinions onto anyone, but merely prompt readers to come to your own conclusions and search for yourselves.

I look forward to some indepth discussions.  Feel free to share your thoughts.