Shame we are cucks who will just take it until there's no coming back. France is a Chad with striking.

I assume if we just give our paychecks directly to our corporate lords, they will let us live in mud huts outside their castles.

Striking does nothing when corporations are sitting on hundreds of billion dollars. They can just wait until strikers starve.

Feb 3, 2023 15:43:03 GMT @ness said:

Shame we are cucks who will just take it until there's no coming back. France is a Chad with striking.

Great example, you picked a country in steady decline due to radical socialist policies. The GDP of the nation has been decreasing since the 1960s.

Why because there is a national obsession with equity and nobody cares about economic growth. It's a country of imbeciles with weak leaders.

GDP post inflation has been increasing since the 40's on the same linear trend. Not sure what radical socialist policies you are seeing that Australia does not currently implement either. If anything you guys are the radical Marxists giving people healthcare, pension and shit.

Everything being expensive as shit (and the wildlife) was the tradeoff I figured. Course much like high taxes to pay for "free" healthcare it seems we're in the same boat in our country. Only we don't get the niceities that is provided by them. I just like seeing the common man stand up, it's refreshing to see when we're so defeated and not willing to rock the boat.

Once you adjust currency we pay a lot more than they do for most things, and it is more expensive to live in the US than Australia as a whole.  Also online comparisons assume that healthcare is free in the US as they do not include it in the cost of living here.

United States has a GDP per capita of $60,200 as of 2020, while in France, the GDP per capita is $42,000 as of 2020.


en.m.wikipedia.org/wiki/35-hour_workweek


Australia is not a cheaper country to live and work in.
It's a cheaper country to be poor or unemployed in.

Everything here costs WAY more than the USA from groceries to energy to rent. We just have more assistance for the working poor... You also have to be smarter and work harder to get paid more in Australia compared to the US. It's shocking to me how many advertised jobs in the USA have literally one function. Here it tends to be at least 3 to 4, probably a reflection on our much smaller economy.

www.mylifeelsewhere.com/cost-of-living/united-states/australia#:~:text=Australia%20is%2010.6%25%20more%20expensive%20than%20United%20States.

Pay more in trivial things, less in core costs.

Other sites support this:

livingcost.org/cost/australia/united-states

Also our median wage is just slightly over your minimum wage.  Converted be 23.63 an hour.  

Feb 4, 2023 0:21:37 GMT c said:

www.mylifeelsewhere.com/cost-of-living/united-states/australia#:~:text=Australia%20is%2010.6%25%20more%20expensive%20than%20United%20States.

Pay more in trivial things, less in core costs.

Other sites support this:

livingcost.org/cost/australia/united-states

Also our median wage is just slightly over your minimum wage.  Converted be 23.63 an hour.  

This is a clear case of lies, damned lies and statistics.
I have already clearly stated that there is maybe no country in the world that is better to be a low income earner.
What doesn't show in the normally quoted numbers is that there is enormous government assistance to people at the bottom end, from child welfare payments to rent assistance.
I don't remember the exact numbers, but in Australia you have to make about 60k before you are a net contributor to the tax system.

Where the graphs that you linked to don't tell the full story is that they are averages.
You have places line New York or San Fran with sky high costs and then you have flyover states.

We don't have that in Australia, when you see our average, that is pretty much it, there isn't a great deal in variety between rental costs in any city, maybe because we don't have many of them.
There isn't an option in Australia to move to a lower cost city and take a job paying decent money to increase your standard of living.
Here wherever you live the real estate is expensive and only varies with the local salary levels.

So low to middle income in Australia do amazingly well, but to move higher than this is harder than it is in the USA by a fair margin.
People coming to Australia are shocked at the living costs.

The standard price of a coffee in Melbourne is no AUD $7, (US$ 4.90) that's not some crazy Starbucks drink, that's a normal coffee from an average cafe. 

The last two years in the US changed things. I am not sure you realize how badly people here got price gorged.  Many items doubled in priced.  Rent rose 50% for, energy costs the same.  

And if you compared stuff on average, you get a comparison of averages. On average comparison sites are saying it is cheaper, on average, to live in Australia than the US.  Maybe the upper class is better off here, but most people are not upper class.

Sure you cheap in the middle of the country, but it is cheap for a reason, no one wants to live there.  Also businesses do not like to set up there as there is a lack of skilled workers in rural areas.

There is the option in Australia to move to a lower cost city and take a job paying decent money to increase your standard of living.

This was seen dramatically throughout the pandemic with people escaping metropolitan cities (ie; lockdowns) tree-changing and moving into the country.

Many Regional Victoria councils saw up to 25% growth in house prices as a result due to demand, driven by population growth.

And as proven - as much as I hate the concept - working remotely became much more common place till this day.

On Cost of living: the median Melbourne house price in June 2022 was $901,000. Compare that to regional at $578,000.

In the regions, that $900,000 would also give you close to 1000m² and a small mansion if you close wisely. $500,000 would still see a modern newish home, and at half the price of the equivalent in the city, if you were working remotely - you'd be winning. However, regional cities don't have the same vibe and culture and " life " compared to Melbourne or Sydney to any significant degree.

Regional cities are no means the colonial dust bowl era shitholes I've described in the past either.

That is basically the median US house price. And sure you could get a cheap house like the one we moved into in Georgia for 80k, but then you get a house like we moved into in Georgia where your driveway becomes a 30 foot pit that costs 25k to fill. Had other added bonuses too like the furnace that leaked carbon monoxide, a backed up outflow pipe that flooded the basement with shit water and an unfinished roof that leaked during storms.

You get what you pay for in the US.

In Australia, anything less than $300,000 in this market is likely :

a) A studio apartment in the metro-city.
b) A knock-down renovation in the regional cities.
c) So far away from civilisation it's not funny. And will actually cost you money slowly long-term due to higher prices on food, consumer goods, etc due to additional freight costs.

Trends that way in the US. There are plenty of places to get houses for next to nothing but they are in towns where most houses are boarded up because the town itself is dead. Or are in GOP areas and just dirt poor. Like the water is brown and unsafe to drink or your toilet pumps shit into yard poor. You want to live in an area with internet that is not from a satellite it will cost you.

People who left Cali in search of cheap living in Texas literally froze to death this week as their cheap living did not include an electrical grid that can withstand cold temperatures.

And yeah rural America has the same costs. Many live an hour drive from their local grocery store and job. Getting people out to you for things like repairs is next to impossible.  Leads to weird things too like one building schools, where all the kids are in a single school that has no buses.  

Is this the China balloon thread?

Feb 5, 2023 16:35:31 GMT KING KID said:

Is this the China balloon thread?

All of Off Topic is.

Also how hilarious would it be if the tech was so advanced that it was a nuclear bomb and China was just pulling a Jigsaw game on us. "You sealed your fate by shooting down an innocent piece of plastic"

Companies planned to stockpile items that are not selling at higher prices, and it is finally biting them. Storage space in warehouses and even containers posing as temp storage are skyrocketing in price. Sure they will find a way to push this cost to consumers as well though, rather than just lower prices and move the goods.

They would rather throw them out than give a discount/god forbid people get it for free from a dumpster. I always thought it was esp. evil how they would cut controller cords and make items they throw out at Gamestop unusable for dumpster divers.

Feb 13, 2023 23:42:16 GMT c said:

Companies planned to stockpile items that are not selling at higher prices, and it is finally biting them. Storage space in warehouses and even containers posing as temp storage are skyrocketing in price. Sure they will find a way to push this cost to consumers as well though, rather than just lower prices and move the goods.

Clearing an item at a reduced price, say below the cost price ( what you paid for it ) and then factoring in the cost of freight, logistics, etc. it ends up costing you even more. 

If insurance fraud isn't something you feel good about, you instead donate the product to a charity and view the financial loss as a fantastic PR / marketing investment. 

Clearance / Shrinkage, or whatever you want to call it, can kill the bottom line on your P&L, so you allocate few dollars across all your stores / branches / sites in your budget and call it " donation " so it looks like you donated the goods, instead of throwing it in the bin or selling it as " clearance " at a reduced or below cost price. 

Feb 14, 2023 10:49:51 GMT NATH45 said:

Feb 13, 2023 23:42:16 GMT c said:

Companies planned to stockpile items that are not selling at higher prices, and it is finally biting them. Storage space in warehouses and even containers posing as temp storage are skyrocketing in price. Sure they will find a way to push this cost to consumers as well though, rather than just lower prices and move the goods.

Clearing an item at a reduced price, say below the cost price ( what you paid for it ) and then factoring in the cost of freight, logistics, etc. it ends up costing you even more. 

If insurance fraud isn't something you feel good about, you instead donate the product to a charity and view the financial loss as a fantastic PR / marketing investment. 

Clearance / Shrinkage, or whatever you want to call it, can kill the bottom line on your P&L, so you allocate few dollars across all your stores / branches / sites in your budget and call it " donation " so it looks like you donated the goods, instead of throwing it in the bin or selling it as " clearance " at a reduced or below cost price. 

Yes, this is an issue.
The problem with Covid was people bought things online and then merchants couldn't replace their goods due to shipping and supply chain issues so they over ordered. Plus a lot of companies are dumb, when Covid hit people went out and bought new PCs, webcams, BBQs the types of things you'd want if you were going to be stuck at home... So these companies somehow convinced themselves that this was a new era, when all this was is future sales pulled forward.

My understanding is that all stock has a lifecycle.
A certain percentage needs to be sold at full price
Then with a reduced margin
Then they try to move stock at cost price
Finally the left over product is moved on as a loss, which is a small offset to the profit already making.

With companies over ordering, there's a good chance they haven't moved anything close to what they were planning to move at full price. This means if they were to start the discounting cycle if will show as a loss on their books and the share price will crater.
Ironically, while the items remain unsold, they are an asset on the balance sheet.

Some notes from our main man Robert Lowe of the RBA today. 

- 10% of Australian borrowers have no cash left-over each week after meeting mortgage and cost-of-living demands. It took a MIT education to figure this out? 
- " Rampant " demand for holidays is is a contributor to Australia’s inflation crisis. Travel, accommodation and eating out are to blame, after wanting to see family & friends after 2 years of lockdown. 
- He also said, in regards to COL pressures, mortgage pain and rising inflation - he will no longer partake in public displays of extravagant lunches with banking bosses prior to making statements on monetary policy that impact the very lives of the minions and plebs that might be offended. These lunches are inappropriate, and " he can't live in a bubble " - yeap, that's pretty much what he said, and vowed to " get out and to talk to people " 
- It was noted, if house prices were to fall from this point, another 10%. The share of loans that would be in negative equity would be just 1%. If they fall another 20%, then it would be 4%. 


A few years ago, an Australian Politician said " you need to make more money " in regards to cost-of-living pressures, when concerns were raised back then. I can't remember who said it, but it wasn't met very warmly. The conversations I've been hearing on talkback radio ( even the youth orientated ones ) have basically been making this point, as if they came up with the bright idea on their own. As making more money, is realistically the only solution to any pressure being felt at the moment. Whether that is a second job, or in young people speak " side hustle " 

Despite all this, my social feeds are flooded with builders offering just 5% down on $600,000+ house and land packages in regional Victorian cities. That's a $30,000 deposit. After all the other bullshit, borrower insurance, etc. You're still likely needing $600,000 from the bank to get your house. Oh, Combank will give you the cash at 6.8%... or just $903 a week. Depending on who you listen to, the average pre-tax income is around $1,300 a week... and we wonder why we're getting ourselves into trouble. 

You guys get to go on vacations o.O

Egg companies in the US just reported record profits after doubling or tripling their prices due to lack of supply. Dems calling them into Congress for a hearing on price gorging.

Amazing to see windfall taxes become a more mainstream idea to the US left.

As it turns out the SVB debacle is a canary in the coalmine for everything this thread is talking about.

Would you believe the SVB CFO used to do the same role at Lehman Brothers?
Roots of the failure are in buying fixed interest MBS at record low rates, then were unable to provide the market rate interest as treasury bonds went up, so they offered 4% while collecting 1.5%, yeah it is pretty crappy math.

Twitter is awash with people saying how the FDIC guarantee of only 250k is unfair... It's not even the point. Where does the money come from if the US Government decides to bail out the bank?? Jerome will have to make his money printer go Brrr and hyperinflation will be upon us.


On the topic of inflation, I freely admit that much of the heat in the market is corporate profits.
That's not even the point... The point is that if prices keep rising and people keep paying them with no reduction in their personal spending it is inflation... There is too much money in the market and the Fed has to raise rates until people stop spending in amounts large enough to stop price pressures.

Feds and Congress are posed now to let SVB fail. First Republic Bank may fail next week, and two others are at risk though. That likely will demand action if buyers are not found.

The American people do not want to support another bailout, particularly when we are told there is no money for us and we need to make social spending cuts. On the road to 2024 this will not be something given easily. And it will not come without heavy regulation coming.

In a true capitalist society, competition would undercut price raises lowering prices. We have cartels price fixing things in the states since we are not enforcing anti-competition laws, and that is driving up the price in most areas seeing it. Look into the areas with the highest rates of price increases, all are linked to limited competition and federal investigations. People will continue to pay the high prices for rent, energy, food and because they must. But you can see demand destruction in many areas now because the lower 50% or so simply have little excess money now.

Look at the post COVID tech collapse.  People just do not have the cash to continue using many of these services post inflation and are making deep cut to them.  

Mar 12, 2023 22:16:43 GMT iNCY said:

As it turns out the SVB debacle is a canary in the coalmine for everything this thread is talking about.

Would you believe the SVB CFO used to do the same role at Lehman Brothers?
Roots of the failure are in buying fixed interest MBS at record low rates, then were unable to provide the market rate interest as treasury bonds went up, so they offered 4% while collecting 1.5%, yeah it is pretty crappy math.

Twitter is awash with people saying how the FDIC guarantee of only 250k is unfair... It's not even the point. Where does the money come from if the US Government decides to bail out the bank?? Jerome will have to make his money printer go Brrr and hyperinflation will be upon us.


On the topic of inflation, I freely admit that much of the heat in the market is corporate profits.
That's not even the point... The point is that if prices keep rising and people keep paying them with no reduction in their personal spending it is inflation... There is too much money in the market and the Fed has to raise rates until people stop spending in amounts large enough to stop price pressures.

I think the major issue at SVB was the bulk of their clientele were tech start ups that live on cheap money as you’ve said many times before. Once they couldn’t get cheap money the tech startups had to withdraw their funds to make payroll and SVB had bad bond/investment exposure. They did a bad job of communicating their sale of bonds to raise funds, and the startups panicked and pulled their cash because they are very sensitive to losing funds. Plus the few VCs that advise most of the tech start ups told their clients to pull funds which caused the run.

And... They just announced a bailout.
Well not a bailout of the bank, but guaranteed all deposits.
It is very reckless.

The announcement says taxpayers won't foot the bill but they will be doing a "special assesment" of banks.
Which means the good banks will have to prop up the shitty ones.
And it's laughable that the tax payers aren't footing the bill for this, the consumer always pays in the end.

More inflation, just what we needed.

Mar 12, 2023 22:40:30 GMT Gyro LC said:

Mar 12, 2023 22:16:43 GMT iNCY said:

As it turns out the SVB debacle is a canary in the coalmine for everything this thread is talking about.

Would you believe the SVB CFO used to do the same role at Lehman Brothers?
Roots of the failure are in buying fixed interest MBS at record low rates, then were unable to provide the market rate interest as treasury bonds went up, so they offered 4% while collecting 1.5%, yeah it is pretty crappy math.

Twitter is awash with people saying how the FDIC guarantee of only 250k is unfair... It's not even the point. Where does the money come from if the US Government decides to bail out the bank?? Jerome will have to make his money printer go Brrr and hyperinflation will be upon us.


On the topic of inflation, I freely admit that much of the heat in the market is corporate profits.
That's not even the point... The point is that if prices keep rising and people keep paying them with no reduction in their personal spending it is inflation... There is too much money in the market and the Fed has to raise rates until people stop spending in amounts large enough to stop price pressures.

I think the major issue at SVB was the bulk of their clientele were tech start ups that live on cheap money as you’ve said many times before. Once they couldn’t get cheap money the tech startups had to withdraw their funds to make payroll and SVB had bad bond/investment exposure. They did a bad job of communicating their sale of bonds to raise funds, and the startups panicked and pulled their cash because they are very sensitive to losing funds. Plus the few VCs that advise most of the tech start ups told their clients to pull funds which caused the run.

I completely agree with everything you wrote, but it only presented an issue to the bank because they have been paying out way more interest than they were receiving... I'm sure we will find out when the dust settles that they were insolvent for a long time.

Now the question is who were the shareholders, the banks not getting bought, so their investment has gone to zero.

Also as this progresses in the US it is VERY political. Trump is telling people to remove their cash from banks because the collapse is here, which could spread the collapse. GOP will likely block any action as bank failures they can use against Biden in 2024. Given we also have a nasty debt ceiling fight coming that the GOP may force the US to default on our economy on shaky terms until the election. GOP seems forcing an economy crisis as their best chance of beating Biden, and really do not care much to fix things so long as they can blame Biden for it.

Feds are not bailing them out. They are auctioning assets to try to cover the deposits right now. FDIC cannot print cash without congressional approval, and raising the debt ceiling, now that we are emergency measures.