Forum Replies Created
My name is Mathew, and I also live in Australia.
I am considering some of the same paths forward with how to invest. I have absolutely no faith in the future viability Australian Dollar, or rather I have almost absolute faith that as we creep further into the territory of increased credit defaults in the private, then corporate sectors (due particularly to rising fuel and food costs for those of us who hover around the poverty line, myself included) — Our wacky Government will get stuck into printing money like it’s about to go out of fashion.
Did you know that one of the most basic ideas one learns in MacroEconomics is that raising interest rates doesn’t really affect supply-cost driven inflation? I can understand that the RBA is wanting to cool down housing price increases and avoid that bubble bursting – and to stop inflation that has occurred due to the recent Government (read Incompetents) economic stimulus packages (read debt for tomorrow’s Incompetents to handle) — but the rate rises are hurting low-income earners significantly, forcing many with barely-manageable debt into default.
OH-OH! Spells all kind of disastrous to me!
Honestly, I expect a whole-system type Australian Financial shut-down sometime within the next 18-36 months, depending on how Global Oil Prices play out. I invite anyone who has a desire to listen and share openly with me, to plan for this event now. It is possible that we may see a series of successively worsening GFCs (global financial crises as we term them in the land down under) the origin of each depending on which nations are reaching mass-credit-default territory. Obviously all of them will impact Australians in a Damaging manner.
Wow, It used to be “all-the-rage” Globalisation really is a dirty word now for those in-the-know. It’s quantum entanglement / butterfly effect style interconnectedness means that there are so many variables at play that we are really pushed into guesswork about whether we may survive (both economically and physically) the coming decade.
We, as Australians cannot escape the fall-out. Rising resource prices may prop our dollar up against other currencies, but this balances out as we import more and more oil.
I personally made a terribly stupid investment that turned out to be a scam, and so have lost pretty well everything. So now, the one time that I wish I could have just enough to own a home, I am thinking “What the heck can I do with $20,000-$40,000.” I can’t buy land with that much. Even if I go in with a group of others to look at co-farming in my area (Armidale, NSW) (if you are considering something also please contact me!) our current savings may not really enough to entitle my family to land on which to grow food and build an earth-home.
So, do I take a bet that gold and/or silver will rise in price much faster than farming land over the next couple of years? Can anyone really give me an idea of what the prices of gold and silver are expected to do in the medium-term future? Obviously rise, but by how much I wonder. I have even considered (if I can have long term access to farming land to store it) purchasing a 50,000-$100,000 litre steel or poly tank and filling it with Diesel or Petrol.
Sounds crazy, but I prefer primary assets in the hope that I may be able to bargain onto a property to provide my family long-term security with the resources needed to evolve into a food, information and energy oasis.
Would love to hear any feedback!