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#26 2011-01-08 06:17:06

loki.verloren
Member
From: Brisbane, Australia
Registered: 2010-10-16
Posts: 142
Trades :   
Website

Re: Australia heads for economic crunch

i personally can't wait for hyperinflation to hit. with the winter wheat oats and barley crops delayed already almost 2 months for planting and veggies all washed away, businesses in transport and generally servicing agriculture are all messed up all over the shop, the pressure on the economy could amplify very quickly as the trigger that starts hyperinflation always comes from a rapid downturn combined with easy loans/money printing.

to be honest i haven't been watching that closely about what australia's position is but i imagine that the drop in sales of chinese goods and contraction of their credit market will mean a contraction in our resource exports but i think perhaps what is holding the collapse back largely has to do with the fact we are the major gold producer. i'm not sure what the exact name of it if there is an economic principle to it, but gold rich nations tend to ride high and fall into the hole last because as the ship sinks they buy all our gold as fast as we can dig it out. once hyperinflation on the USD starts our gold sales will stall and then the trouble hits us.

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#27 2011-01-08 07:05:03

MelbBrad
Member
From: Australia
Registered: 2010-11-29
Posts: 636
Trades :   

Re: Australia heads for economic crunch

Jonesy wrote:
benjamind2010 wrote:

End times are on us.  Both my parents are christians, and that is what they are saying.

As a christian, how do you survive?

Christians love the concept of end times and destruction. So do the other Desert God religions. And they are trying to bring it on. There are no "End Times" as such other than that they the religious fundamentalists are trying to create.

The sane people of the world can create a healthy ongoing civilisation, we have the technology and skills. We just need the religious fundamentalists from the 3 religions that worship the Monster In The Sky to stop being such losers.

+1000000000000000000000000000 roll

Last edited by MelbBrad (2011-01-08 07:05:42)


Work is a necessary evil; best avoided...
Those who make peaceful revolution impossible make violent revolution inevitable...

Smooth trades with domdolittle, hawkeye, Roo, ABC Bullion Sydney, Jenny Tremaine, Flip...

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#28 2011-01-08 07:22:58

ChunkyPM
Member
From: Nth Victoria
Registered: 2010-11-26
Posts: 55
Trades :   

Re: Australia heads for economic crunch

AgOx wrote:
ChunkyPM wrote:

What i have seen and learnt over the years as my time on the land.
Farm prices have gone up a hell of a lot.
Cost of farming has gone up hell of a lot.
The laws for farmers have gone up hell of a lot.
All i see that will happen is the farm prices will come down in the next 5-10 years. Due to the fact the average farmer is ready to retire and has no sons or daughters that wish to take on the farm. Can not blame them either they have seen their parents struggle for so long while they were out making a better lifestyle in the towns and cities.
This in turn will make it easier for a Company like Wooly's to come in and buy more into the market. Keeping prices down for the meantime so that the family farm can not make a buck and be forced to either sell to Wooly's or overseas investors.
Back in the hey days of farming you could put one dollar into the farm and receive back ten. But know the farmers are putting in between 6-9 dollars to receive 10.
I only learnt of this a few years ago and it had me puzzled for a while why it has gone this way. A farm was just like a BANK, only needing 10% to make 100%. It's know wonder that the banks where so easy on farmers for finance in the early days. But as we all know to well each year is different from any other for a farmer but not for the bankers


So true..I am looking to buy rural land but prices are so out of kilter with the risk one takes being on the land. From what I saw, there are heaps of farmers at retiring age yet their children have no hope to buy them out let alone given the land to make a living from. They seem to have had more than the average sized family. How do you split the farm? How do you survive on the pension if you give the farm away?

From what I can tell lots are into cattle and sheep. They pay farm managers or outsource/buy what they need. There's a lot of good tax incentives but still not enough to pay the interest off the land once expenses and taxes have been taken care of. Australia is the land of poor productivity and natural disasters. Very risky to be a farmer. Something has to give.

I am a firm believer in a strong small farming industry because it gives us variety that the big wigs can't give us.  I also believe we need the big farms too just because we simply need mass production to feed an exponentially growing human family. The cost is that these big players  destroy food biodiversity thus food security. A big fail. If any

Mate i say this much!
8-12 years out of twenty are good years for farming, but those 8-12 that are not i have seen what i call 5 year farmers. They buy in when times are good, not having any background of the land they have invested in. They also try playing "keeping up with the Jones's"(no offence added) buy over capitalizing the farm with flash new toys. Gone are the days of the "Aussie inventor" and use already what he has available to him. Contract this part of the work out, contract that part of the work out, buy in all his feed instead of growing what he can to make his farm more sustainable. In my neck of the woods iv'e seen plenty of ups and downs in my soldier settlement farming community, but its been a steady decline in the last 10 years when everyone thought that they either need to buy next door out or sell out. The ones that sold out either moved away or became contractors. The ones that bought next door have more debt now than what they first started with. The contractors mind you are doing pretty well for them self, employing new workers and just keeping the community going with the circle of fiat that the towns need.

I can see some smaller farms that are not setup for these larger ones become a niche of there own. Changing the way farming has been done into new markets like goats, sheep milk, and other permaculture style farming. These will become like little pockets of gold in years to come, but only if the same farmer stays on with his project and learns from the "Jones's" instead of keeping up. They won't have a monostyle farm but more like they used to have when back in the 50's and 60's, using every bit of land and produce to it's maximum but also having a balance for the land welfare and bank balance.


I'm a Hunt with no brothers!

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#29 2011-01-08 07:35:02

millededge
Member
From: camp x-ray, spelling division
Registered: 2010-09-04
Posts: 2,417
Trades :   16 

Re: Australia heads for economic crunch

loki.verloren wrote:

i personally can't wait for hyperinflation to hit. with the winter wheat oats and barley crops delayed already almost 2 months for planting and veggies all washed away, businesses in transport and generally servicing agriculture are all messed up all over the shop, the pressure on the economy could amplify very quickly as the trigger that starts hyperinflation always comes from a rapid downturn combined with easy loans/money printing.

to be honest i haven't been watching that closely about what australia's position is but i imagine that the drop in sales of chinese goods and contraction of their credit market will mean a contraction in our resource exports but i think perhaps what is holding the collapse back largely has to do with the fact we are the major gold producer. i'm not sure what the exact name of it if there is an economic principle to it, but gold rich nations tend to ride high and fall into the hole last because as the ship sinks they buy all our gold as fast as we can dig it out. once hyperinflation on the USD starts our gold sales will stall and then the trouble hits us.

the good news is China is the biggest producer, although they don't export

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#30 2011-01-08 09:23:24

mmm....shiney!
Silver Stacker
From: 昆士蘭
Registered: 2010-11-15
Posts: 15,951
Trades :   102 
Website

Re: Australia heads for economic crunch

ChunkyPM wrote:

I can see some smaller farms that are not setup for these larger ones become a niche of there own. Changing the way farming has been done into new markets like goats, sheep milk, and other permaculture style farming. These will become like little pockets of gold in years to come, but only if the same farmer stays on with his project and learns from the "Jones's" instead of keeping up. They won't have a monostyle farm but more like they used to have when back in the 50's and 60's, using every bit of land and produce to it's maximum but also having a balance for the land welfare and bank balance.


I can see some smaller farms that are not setup for these larger ones going bust. Unfortunately the Australian palate on a whole is not attuned to goat meat, sheep milk and hippy drug smoking "permaWTF?" tongue. A percentage of the population still want their crumbed steak with chips and don't try selling me any of that rabbit food shit. My God, I know people who won't eat oysters and they're God's gift to the world, apart from Jesus of course.

Only necessity and economic devastation will alter the food preferences of the populace.


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#31 2011-01-08 11:45:12

hawkeye
Silver Stacker
From: Perth, Australia
Registered: 2010-11-10
Posts: 3,337
Trades :   25 

Re: Australia heads for economic crunch

benjamind2010 wrote:

End times are on us.  Both my parents are christians, and that is what they are saying.

As a christian, how do you survive?

Can you give me a timetable for these end times?  And how do you know this?  Is there some sign? 

Reason I want to know is I plan to spend all my money on drugs and hookers right up until that point until I have none left, so if you get it wrong I will be very poor and very upset with you.

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#32 2011-01-08 11:58:51

Dabloodymess
Member
From: Russia
Registered: 2010-07-07
Posts: 1,375
Trades :   30 

Re: Australia heads for economic crunch

hawkeye wrote:
benjamind2010 wrote:

End times are on us.  Both my parents are christians, and that is what they are saying.

As a christian, how do you survive?

Can you give me a timetable for these end times?  And how do you know this?  Is there some sign? 

Reason I want to know is I plan to spend all my money on drugs and hookers right up until that point until I have none left, so if you get it wrong I will be very poor and very upset with you.

I would like to know as well, as thats exactly how I would like to go out... but it would be a shame if my magical white powder mountain and hooker money ran out before the end of times, thus it needs to be very carefully timed!

Last edited by Dabloodymess (2011-01-08 11:59:30)


"Those who cannot remember the past are condemned to repeat it." - George Santayana
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#33 2011-01-08 19:53:22

lakesentrance
Member
From: Australia
Registered: 2010-12-14
Posts: 275
Trades :   
Website

Re: Australia heads for economic crunch

Dabloodymess wrote:
hawkeye wrote:
benjamind2010 wrote:

End times are on us.  Both my parents are christians, and that is what they are saying.

As a christian, how do you survive?

Can you give me a timetable for these end times?  And how do you know this?  Is there some sign? 

Reason I want to know is I plan to spend all my money on drugs and hookers right up until that point until I have none left, so if you get it wrong I will be very poor and very upset with you.

I would like to know as well, as thats exactly how I would like to go out... but it would be a shame if my magical white powder mountain and hooker money ran out before the end of times, thus it needs to be very carefully timed!


U guys are a bit crazy.

It's too easy to slip into the doomsday scenario. I don't think there's gonna be a complete collapse of fiat in the sense of anarchy in the streets.

Recessions and depressions have come and gone, and they'll come and go again. And, yes, we are heading for another one on a global scale. That's too obvious. However, it's not doomsday. And thinking that way tends to keep your attention away from "today", and into the future.

As the worth of fiat is worn down, and everyone gets to pay off their debts with inflated currency, there will be much unemployment and inflation, and the usual pains that come along with it. Yes food will be expensive, but not scarce. Energy will be expensive, but not scarce. We will keep our earth rotating (even if it flips poles), and we'll keep trading and swapping things with each other. Life will go on.

However, the foundation of trade will change. Gold & Silver will have to come back into play as currency and money, because of the unreliability of any fiat created. And that's what I think the main change coming is .... reverting back to real money when the fiat is worthless.

It won't cause global destruction, it is only money afterall. But if the collapse in fiat causes us all to be more aware, curtail our "junk" buying, wasteful usage of resources and constant polluting of our lands, then that's a good thing.

As every gardener knows, u gotta prune that grapevine hard.

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#34 2011-01-08 19:57:38

THUCYDIDES79
Silver Stacker
From: Brisbane/Greenbank
Registered: 2010-09-01
Posts: 3,646
Trades :   69 

Re: Australia heads for economic crunch

Dabloodymess wrote:
hawkeye wrote:
benjamind2010 wrote:

End times are on us.  Both my parents are christians, and that is what they are saying.

As a christian, how do you survive?

Can you give me a timetable for these end times?  And how do you know this?  Is there some sign? 

Reason I want to know is I plan to spend all my money on drugs and hookers right up until that point until I have none left, so if you get it wrong I will be very poor and very upset with you.

I would like to know as well, as thats exactly how I would like to go out... but it would be a shame if my magical white powder mountain and hooker money ran out before the end of times, thus it needs to be very carefully timed!


Thats actually what they do on TV


www.professorfekete.com

*** With paper you ensure yourself against everything - except for paper itself ! big_smile ***

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#35 2011-01-08 20:05:22

AgOx
Member
From: Sydney
Registered: 2010-03-19
Posts: 191
Trades :   

Re: Australia heads for economic crunch

ChunkyPM wrote:
AgOx wrote:
ChunkyPM wrote:

What i have seen and learnt over the years as my time on the land.
Farm prices have gone up a hell of a lot.
Cost of farming has gone up hell of a lot.
The laws for farmers have gone up hell of a lot.
All i see that will happen is the farm prices will come down in the next 5-10 years. Due to the fact the average farmer is ready to retire and has no sons or daughters that wish to take on the farm. Can not blame them either they have seen their parents struggle for so long while they were out making a better lifestyle in the towns and cities.
This in turn will make it easier for a Company like Wooly's to come in and buy more into the market. Keeping prices down for the meantime so that the family farm can not make a buck and be forced to either sell to Wooly's or overseas investors.
Back in the hey days of farming you could put one dollar into the farm and receive back ten. But know the farmers are putting in between 6-9 dollars to receive 10.
I only learnt of this a few years ago and it had me puzzled for a while why it has gone this way. A farm was just like a BANK, only needing 10% to make 100%. It's know wonder that the banks where so easy on farmers for finance in the early days. But as we all know to well each year is different from any other for a farmer but not for the bankers


So true..I am looking to buy rural land but prices are so out of kilter with the risk one takes being on the land. From what I saw, there are heaps of farmers at retiring age yet their children have no hope to buy them out let alone given the land to make a living from. They seem to have had more than the average sized family. How do you split the farm? How do you survive on the pension if you give the farm away?

From what I can tell lots are into cattle and sheep. They pay farm managers or outsource/buy what they need. There's a lot of good tax incentives but still not enough to pay the interest off the land once expenses and taxes have been taken care of. Australia is the land of poor productivity and natural disasters. Very risky to be a farmer. Something has to give.

I am a firm believer in a strong small farming industry because it gives us variety that the big wigs can't give us.  I also believe we need the big farms too just because we simply need mass production to feed an exponentially growing human family. The cost is that these big players  destroy food biodiversity thus food security. A big fail. If any

Mate i say this much!
8-12 years out of twenty are good years for farming, but those 8-12 that are not i have seen what i call 5 year farmers. They buy in when times are good, not having any background of the land they have invested in. They also try playing "keeping up with the Jones's"(no offence added) buy over capitalizing the farm with flash new toys. Gone are the days of the "Aussie inventor" and use already what he has available to him. Contract this part of the work out, contract that part of the work out, buy in all his feed instead of growing what he can to make his farm more sustainable. In my neck of the woods iv'e seen plenty of ups and downs in my soldier settlement farming community, but its been a steady decline in the last 10 years when everyone thought that they either need to buy next door out or sell out. The ones that sold out either moved away or became contractors. The ones that bought next door have more debt now than what they first started with. The contractors mind you are doing pretty well for them self, employing new workers and just keeping the community going with the circle of fiat that the towns need.

I can see some smaller farms that are not setup for these larger ones become a niche of there own. Changing the way farming has been done into new markets like goats, sheep milk, and other permaculture style farming. These will become like little pockets of gold in years to come, but only if the same farmer stays on with his project and learns from the "Jones's" instead of keeping up. They won't have a monostyle farm but more like they used to have when back in the 50's and 60's, using every bit of land and produce to it's maximum but also having a balance for the land welfare and bank balance.

So true...I think we should start a new farm thread.

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#36 2011-01-08 20:31:18

AgOx
Member
From: Sydney
Registered: 2010-03-19
Posts: 191
Trades :   

Re: Australia heads for economic crunch

mmm....shiney! wrote:
ChunkyPM wrote:

I can see some smaller farms that are not setup for these larger ones become a niche of there own. Changing the way farming has been done into new markets like goats, sheep milk, and other permaculture style farming. These will become like little pockets of gold in years to come, but only if the same farmer stays on with his project and learns from the "Jones's" instead of keeping up. They won't have a monostyle farm but more like they used to have when back in the 50's and 60's, using every bit of land and produce to it's maximum but also having a balance for the land welfare and bank balance.


I can see some smaller farms that are not setup for these larger ones going bust. Unfortunately the Australian palate on a whole is not attuned to goat meat, sheep milk and hippy drug smoking "permaWTF?" tongue. A percentage of the population still want their crumbed steak with chips and don't try selling me any of that rabbit food shit. My God, I know people who won't eat oysters and they're God's gift to the world, apart from Jesus of course.

Only necessity and economic devastation will alter the food preferences of the populace.

Not true. Sydney alone has a demand for specialty produce that isn't in the monoculture/big business model that would astound you. I see garden farmers making a living.  I also see a rise in the organic market and a resurgence of people interested in permaculture. I see I rise in farmer direct business (fruit and veg boxes).  I see a rise in urban community gardens. I believe that popular shows like Master Chef are broadening the Aussie palate.  I believe that many people enjoy and seek out  new and exotic flavours are on the rise. I don't believe big agribusiness can operate in this space. It's too narrow and the profits are scattered among a colossal amount of variety and conditions. It is more efficient and socially equitable to diversify and support all forms of farming big and small. Not to mention the national security risk of loss of biodiversity that big agri business poses. Perhaps the biggest risk for future food security. Sure it's a battle for control but big agribusiness will not win. Nature hates a monoculture.  Sure some people will always be  the standard white bread, meat and potato people but they are a growing minority.  Just think, when Italian (pasta and pizza) and Greek (kebabs) were strange foreign food. They certainly now Aussie standards.

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#37 2011-01-08 23:08:42

shortstack
Member
From: Adelaide
Registered: 2010-12-08
Posts: 87
Trades :   

Re: Australia heads for economic crunch

ChunkyPM wrote:

  Just think, when Italian (pasta and pizza) and Greek (kebabs) were strange foreign food. They certainly now Aussie standards.

And don't forget rice. My parents remember rice and pasta only ever being eaten as puddings. roll

Lucky we have the diversity now and have a range of staples to choose from.

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#38 2011-01-08 23:19:02

lakesentrance
Member
From: Australia
Registered: 2010-12-14
Posts: 275
Trades :   
Website

Re: Australia heads for economic crunch

We're noticing in the clothing industry, our sales are steadily increasing on hemp and bamboo fibres, as opposed to our "competition" who sell nylon/rayon are decreasing.

Thus, we're slowly eliminating the nylon/rayon stuff and will focus the next 3-5 years on building our natural fibre ranges up. Definitely a change happening, and it's the melbournites causing it.

Last edited by lakesentrance (2011-01-08 23:20:26)

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#39 2011-01-08 23:37:09

dickmojo
Member
From: Toowoomba
Registered: 2010-04-18
Posts: 238
Trades :   
Website

Re: Australia heads for economic crunch

Benjamind, again with the deflationary rhetoric~ telling everyone that Treasury bonds and the USD are the safe havens... oh dear.

Look, I agree with your analysis, and I would point out that Jim Rogers (my idol) currently owns US$'s, but I simply cannot see thebenbernank doing anything other than printing up the Trillions required to cover all the bad waves of State and Muni bond defaults coming up soon. If this scenario pans out, it would be negative for US bonds and ultimately the $.


"Come, Watson; the game is afoot."

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#40 2011-01-09 00:45:01

Silverthorn
Member
Registered: 2010-04-29
Posts: 2,576
Trades :   

Re: Australia heads for economic crunch

dickmojo wrote:

Benjamind, again with the deflationary rhetoric~ telling everyone that Treasury bonds and the USD are the safe havens... oh dear.

Look, I agree with your analysis, and I would point out that Jim Rogers (my idol) currently owns US$'s, but I simply cannot see thebenbernank doing anything other than printing up the Trillions required to cover all the bad waves of State and Muni bond defaults coming up soon. If this scenario pans out, it would be negative for US bonds and ultimately the $.

that's my take on it as well. if the will to print ever drops though then deflation could take hold again.

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#41 2011-01-09 06:40:41

ChunkyPM
Member
From: Nth Victoria
Registered: 2010-11-26
Posts: 55
Trades :   

Re: Australia heads for economic crunch

shortstack wrote:
ChunkyPM wrote:

  Just think, when Italian (pasta and pizza) and Greek (kebabs) were strange foreign food. They certainly now Aussie standards.

And don't forget rice. My parents remember rice and pasta only ever being eaten as puddings. roll

Lucky we have the diversity now and have a range of staples to choose from.

It was only a month or so ago i had my first pleasure of eating goat meat. Couldn't believe how well it came up in the pressure cooker at the restaurant. A lady at the table ask me what i thought and then told me that per kg it's cheaper than the ordinary meats we buy at the butchers. What surprised me was that she grows cattle and buys alot of goat meat, also she said its alot leaner and healthier than the others.
The one that is going to cause alot of time to come around is the horse meat that Australia has only just passed by law that humans can eat. When my parents leased a piggery of some Japanese 20 odd years ago this is what they wanted to do. Fatten up horses and send them as live export to Japan. This is one market that will turn into a bull market until the right breed is found for the meat. It's different but times are changing!

Last edited by ChunkyPM (2011-01-09 06:41:19)


I'm a Hunt with no brothers!

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#42 2011-01-09 07:39:46

mmm....shiney!
Silver Stacker
From: 昆士蘭
Registered: 2010-11-15
Posts: 15,951
Trades :   102 
Website

Re: Australia heads for economic crunch

AgOx wrote:
mmm....shiney! wrote:

I can see some smaller farms that are not setup for these larger ones going bust. Unfortunately the Australian palate on a whole is not attuned to goat meat, sheep milk and hippy drug smoking "permaWTF?" tongue. A percentage of the population still want their crumbed steak with chips and don't try selling me any of that rabbit food shit. My God, I know people who won't eat oysters and they're God's gift to the world, apart from Jesus of course.

Only necessity and economic devastation will alter the food preferences of the populace.

Not true. Sydney alone has a demand for specialty produce that isn't in the monoculture/big business model that would astound you. I see garden farmers making a living.  I also see a rise in the organic market and a resurgence of people interested in permaculture. I see I rise in farmer direct business (fruit and veg boxes).  I see a rise in urban community gardens. I believe that popular shows like Master Chef are broadening the Aussie palate.  I believe that many people enjoy and seek out  new and exotic flavours are on the rise. I don't believe big agribusiness can operate in this space. It's too narrow and the profits are scattered among a colossal amount of variety and conditions. It is more efficient and socially equitable to diversify and support all forms of farming big and small. Not to mention the national security risk of loss of biodiversity that big agri business poses. Perhaps the biggest risk for future food security. Sure it's a battle for control but big agribusiness will not win. Nature hates a monoculture.  Sure some people will always be  the standard white bread, meat and potato people but they are a growing minority.  Just think, when Italian (pasta and pizza) and Greek (kebabs) were strange foreign food. They certainly now Aussie standards.

Sorry AgOx, it is true. And it doesn't astound me at all what is available to Sydneysiders. I agree with all of your observations and yes there are markets for and champions of specialty produce and they have existed for at least 30 years, re Maggie Beer. And while initially catering to a minuscule proportion of the population, the consumer base has widened. But it is not mainstream. Until it becomes mainstream it will remain a market mainly pandering to the trendy, the well off or those few who actually give a damn about what they eat and in the end don't mind paying for the privilege of eating food which has not been artificially fertilised, artificially protected from pest and disease or genetically enhanced. And I can tell you one thing, the big chains will exploit the organic market long before a small local farmer can eventually sit back and say, "I've made enough money, I don't need to work my paddocks anymore." Coles is doing it now.

Small farms are extremely hard work to make economically viable. How many of the farmers that you buy produce from are under 25? Most are older people who have worked the land for years and have had their small acreage land for years, they don't owe a million dollars. Many of those farmers also produce for the mass market and utilise the local community market as a source of cash in hand for excess stock. I can also tell you one thing, if your local farmer at the small market hasn't got any of his own zucchinis to sell cause he's run out, he'll buy them from somewhere else and sell them to you rather than not go to the market. And there's no way I would ever buy those delivered organic vegetable boxes you see advertised in cities. Overpriced outrageously. A complete ripoff, they must use gold dust to print the letters O-R-G-A-N-I-C on the boxes.

"Australians eat 2.7 million meals at large fast food restaurants every day and one in every $3 we spend on food is on meals prepared outside our homes." http://www.sciencealert.com.au/opinions … 17160.html

Mate, the standard meat and 3 veg (yes you did say potato) is not a growing minority (though I don't know what that means), it's a shrinking majority, but there's nothing wrong with meat and 3 veg anyway. And the pizza you buy from your average pizza franchise is as far removed from real Italian pizza as crab sticks are from crustaceans.

I don't watch Master Chef.


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#43 2011-01-09 07:56:52

Auspm
Banned

Re: Australia heads for economic crunch

I haven't eaten at Maccas, KFC, Pizza Slut or any of those other chains in years.  I refuse to eat it.  I admit I am one of those Sydney food snobs who'd rather rent and eat well than buy a POS 500k fixer upper in a crime ridden area of Sydney to follow the 'Australian Dream' (tm).

I care about what I eat and what my family eats.  Very much so in fact!

But alas, exceptions don't make the rule and the amount of shit people I know eat on a daily basis... well, there's no words to describe it really@

#44 2011-01-09 10:06:24

mmm....shiney!
Silver Stacker
From: 昆士蘭
Registered: 2010-11-15
Posts: 15,951
Trades :   102 
Website

Re: Australia heads for economic crunch

Auspm wrote:

buy a POS 500k fixer upper

What does POS stand for?


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#45 2011-01-09 10:17:03

Apollo
Member
From: Australia
Registered: 2010-09-05
Posts: 572
Trades :   40 

Re: Australia heads for economic crunch

mmm....shiney! wrote:
Auspm wrote:

buy a POS 500k fixer upper

What does POS stand for?

"Piece of Sh!t" cool


"Just about anything you buy, rather than paper, is better. You're bound to come out ahead, in the long pull. If you don't like gold, use silver, or diamonds or copper, but something. Any damn fool can run a printing press." - Nelson Bunker Hunt

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#46 2011-01-09 20:07:14

mmm....shiney!
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From: 昆士蘭
Registered: 2010-11-15
Posts: 15,951
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Re: Australia heads for economic crunch

lol


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#47 2011-01-09 20:48:09

Peter
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From: sydney
Registered: 2009-07-27
Posts: 2,490

Re: Australia heads for economic crunch

POS stands for price of silver.


....................................
"It is no measure of health to be well-adjusted to a sick society." ~ Jiddu Krishnamurti

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#48 2011-01-09 22:28:37

Stedlar
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Registered: 2010-08-16
Posts: 1,068
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Re: Australia heads for economic crunch

I live in nice area, and from time to time enjoy takeaway food. It tastes nice, and it's a treat for the kids. Australian produce is amongst the best in the world.

I did rent for a little while, a long long time ago, but saved really hard and denied myself many things to buy my first house. It was not really where I wanted to be as it was a fair way out, but I worked and saved hard to pay it off, before upgrading to my next, which was closer in. I see renting as such a waste of money, in my opinion. I could not stand it to be in a position where I was funding someone else's life style with my hard earned dollars or that the house where my kids are growing up in could be sold out from underneath me.

I guess we all make the choices and live with them. There were times when my low income and high debt meant that things were tough. It was not easy to keep paying down a loan , when driving an old car, and with friends going overseas and such. That redraw looked so tempting. But it's about choices. Now I can move my kids from the public school they are attending to a private school. The fees are high, but not as much as my mortgage repayments were.

When the hard times come to Australia, as I believe they will, I won't have to worry about my rent going up, or interest rates rising on my mortgage. But I will feel sad for all the people who will be put onto struggle street. In fact I would if I could have Australia miss the whole recession thing entirely.


It's going to take much longer that we think, and happen much quicker than we expect.

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#49 2011-01-10 02:51:29

errol43
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From: Bundaberg
Registered: 2010-04-13
Posts: 6,325
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Re: Australia heads for economic crunch

Stedlar  Would you borrow $300k or $400k to buy a house to day.? My sons refuse to play the game of being a debt slave for 30years with the added worry of interest rate rises plus always being well aware that both you and your partner must have full time employment to fulfill your dream.

Regards Errol 43

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#50 2011-01-10 03:25:18

malachii
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From: Victoria
Registered: 2010-06-08
Posts: 1,864
Trades :   280 
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Re: Australia heads for economic crunch

Debt slave or Rental slave - which is better?

I'm actually not a fan of either (I know - not really an option) - both have advantages and disadvantages.  My big concern is people who say they dont want a 30 year mortgage so they rent but never actually do any investing at all.  They then complain they have no assets and the landlords are ripping them off and they have no other option whereas if they had made the hard decisions earlier - they would own at least part of a property they would then have options.

In my opionion (and I know this is different to a lot on this forum) is if you dont want to buy where you live - rent there but buy somewhere else and rent it out.  This gives you the obvious tax advantages, allows you to buy somewhere "more affordable", someone else helps pay off your asset and makes it so you dont get left behind if the market booms.

malachii


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