Interest rate cuts, more money for us! (2 Viewers)

[ziki]

Look mate, you gotta do the cooking by the book.

im not good with english what does that mean cooking by the book? and why do you predict that we are going to go into very high interest? is that based on anything?

 

[Trefoil]

The economy hadn't had a chance to respond to the recent absurd rate cuts when those figures were published.

We won't be able to find anything meaningful about the latest slashes for at least several months.

I predict dangerously high inflation. The RBA will be forced to raise interest rates significantly and we will go further into this inevitable recession.

You predict inflation to increase, yet for us to also go (further) into recession?

How exactly does that work?

 

[Trefoil]

well as you can see im in year 9... so im very confused by the two arguments, can someone tell me whose right???
but i still think that its gonna drop

Dis-inflation (a fall in inflation) is not the same as deflation (negative inflation).

The first is generally helpful. The second is a very bad thing and typically associated with depressions (e.g. the Great Depression).

Britain, America and a few other countries are currently entering deflation or significantly at risk of it. Australia is not.

Deflation is bad because it creates an unstoppable cycle of falling prices. You might think cheap is good, but the problem is, people don't buy. They realise tomorrow things will be even cheaper, so they wait.

 

[electrolysis]

The economy hadn't had a chance to respond to the recent absurd rate cuts when those figures were published.

We won't be able to find anything meaningful about the latest slashes for at least several months.

I predict dangerously high inflation. The RBA will be forced to raise interest rates significantly and we will go further into this inevitable recession.

now examine Glenn Steven's speech:

The Australian economy has been more resilient than other advanced economies, but recent data nonetheless indicate that a significant moderation in demand and activity has been occurring. With confidence affected by the financial turbulence and a decline in the terms of trade now under way, more cautious behaviour by both households and businesses is likely to see private demand remain subdued in the near term. With that outlook, and with capacity pressures now easing, it is likely that inflation in Australia will soon start to fall. Global disinflationary forces will assist in this regard, though the depreciation of the exchange rate means that the decline of inflation to the target could take longer than would otherwise have been the case.

 

[ziki]

sorry i meant dis-inflation not deflation

 

[housah0lic]

i honestly wish i understood this.



god damn fashion being my only interest in life.

 

[ziki]

Dont need to know all this... all you need to know is "if you buy houses now, you will save money "

 

[housah0lic]

i will pay someone 10 bux to lecture me on this shit for like an hour

i'll pay for your coffee too

 

[Trefoil]

Will lecture for sex.

 

[housah0lic]

ok when

 

[Trefoil]

ok when

Uh... well I'll have a dorm in Wollongong next year.

Otherwise if that's a bit too late for you, we'll have to do it in have to be like a public park or something. How's December 25th sound?

 

[ziki]

ok when

lol! trev sounds wise.. but his HSC is hidden so is his gender...... could he wait.. could it be a she? XD

 

[Wheelbarrows]

allysar, didn't you do economics?

 

[housah0lic]

no i changed courses at the beginning of yr 11 hence why i have a 2007 eco book still wrapped in plastic.

.

and mr foil. you can find me at the beach. i'm the one with the body like victoria silvstedt

 

[sthcross.dude]

now examine Glenn Steven's speech:

Yeah cause Glenn Steven's is totally impartial and has no motivation to understate the risk of inflation after slashing interest rates.

FFS, even he concedes "the depreciation of the exchange rate means that the decline of inflation to the target could take longer than would otherwise have been the case."

 

[housah0lic]

Yeah cause Glenn Steven's is totally impartial and has no motivation to understate the risk of inflation after slashing interest rates.

FFS, even he concedes "the depreciation of the exchange rate means that the decline of inflation to the target could take longer than would otherwise have been the case."

you seem to know a lot.


coffee and 10 bux for telling me what you already know whilst we bond?

 

[Trefoil]

Yeah cause Glenn Steven's is totally impartial and has no motivation to understate the risk of inflation after slashing interest rates.

FFS, even he concedes "the depreciation of the exchange rate means that the decline of inflation to the target could take longer than would otherwise have been the case."

Do you have any basis for your strange notion that a recession will increase inflation, or that inflation will cause/worsen a recession?

Inflation is due to excess consumption and growth. That's kind of the opposite of a recession, mate.

 

[sthcross.dude]

i will pay someone 10 bux to lecture me on this shit for like an hour

i'll pay for your coffee too

Your options:

(1) Pay some maladjusted hack from bos to feed you halfbaked misunderstandings.

(2) Avail yourself of the mass of free information available on the internet.

 

[Trefoil]

you seem to know a lot.


coffee and 10 bux for telling me what you already know whilst we bond?

What specifically do you want to know about, anyway?

 

[housah0lic]

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