Never seen their currency devalued and have their life savings evaporate overnight

Even the downturn from the Asian financial crisis -although it wasn’t all that bad - was in the 90s so many weren’t even born then or were too young to remember

The GFC didn’t really impact Australia very badly, and the worst effects were softened by monetary policy (back when there was scope to cut interest rates)

Decades of stable interest rates, low unemployment and no structural budget deficit, and other country’s willingness to fund the current account deficit

No wonder they’re all bingeing on cheap debt.

Wonder how they’ll handle it when it goes pear shaped

r u on fukkin drugs?

'08/09, march 2020... do you even know what recession means?

Yeah this is some powerful insight bro. What do you think all these retarded zoomers are going to do when they see a real depression or real inflation that the government can't just print their way out of?

It's the stuff totalitarianism is made of 100% ded srs.

When will it go pear shaped?

Technical recession is two consecutive quarters of negative growth

I’m talking about Australia btw

And more about changes in the real economy that people would’ve noticed

Like significant unemployment

Or like in the GFC where external factors caused interest rates to go up despite no inflationI don’t know and don’t pretend to know

But you can’t just keep borrowing money from future generations by issuing debt and pumping into asset price speculation that does nothing to build the capacity of the economy in the long run

Eventually something breaks and this time we don’t have monetary policy to soften the blow

Who? 12 year olds?

The Great Recession was back in 2009, and the affects were felt into 2015…

Location: United States of Cuckmerica

Don't worry, western economies have learned by now that central banks can prevent any recession given enough power.

The COVID response has cemented this lesson.

Of course zoomers will have to pay $500k for a starter home but that's actually a feature, not a bug. We have to protect boomers' bloated pensions and home equity somehow.

You won’t get an argument from me on that.

But, on the recession point, the recession was global.

It’s worse than that here

But people under the age of 30 don’t remember the oil crisis, and nobody teaches them terms like “stagflation” and what it means when prices double overnight, interest rates hit 17% and your wage hasn’t increased

Hell I only know about the oil crisis from econ textbooks

People are throwing money around like the days before the GFC. As a property developer I’m cool with it but there are going to be a bunch of hurt feelings when the music stops.Based on official figures, Australia supposedly avoided a second consecutive quarter of negative growth

I was skeptical but the numbers are the numbers. Once interbank lending normalised things got back to BAU pretty fast here, we didn’t have fallout like other developed economies

Stonks only go up, real estate only goes up, 3-5% down low intrrest rates, house is your best investment, printing money, dollar is worth nothing buy assets.

All I hear everyday.

If I wanted to create a generation of slaves I get everyone leveraged up and create a dollar shortage.

BRB most under 40 already have high student loan debt, low wages, low savings. Yoloing the rest hedging inflation seems like a recipe for disaster

I don't know the statistics for Oz but in America the average consumer came out of the coof crisis with more money in savings than beforehand. Last month inflation had already climbed to 4.2% and a good deal more is hidden in the stock market right now (because people went out and YOLO'd on Tesla and Dogecoin instead of injecting their stimmy into the material economy).

Whether or not zoomers have any experience with the harsh realities of classical economics or not, they're about to get a really srs wake up call.

Yeah my question is how are they going to react to it

Tears? Memes? Stoic bravado? Grassroots political reform? Popular coup? Idk.

I was one of the few fortunate that kept their job, and the hermit lifestyle has allowed to stack my cash.

Im better off rn then ive ever been. Waiting for everything to cool off in the next year or two before i start shpping for assets.

But in reality they’ll cope by doing/thinking whatever their overlords in social media/traditional media/politicians tell them to think. They’ll have many justifications.

Yeah I tend to believe this is where it's all heading as well. People are just going to lie down in the matrix goo while their technocrat overlords wield more and more control over their day to day lives. We lol @ China for their social credit score but if you wrote ******* on a forum 10 years ago, think gender and biological sex are the same thing, or don't support 100% of the BLM agenda and then hold any kind of position, you're entire life and the lives of your family can be destroyed in an instant.

Imagine showing someone a photo of 1950's America compared to today. The dystopia is already here.

In the same boat, but also terrified about losing my savings to wild inflation. Trying to educate myself re how to hedge inflation.

Depends if you actually believe there is rampant inflation. Inflation use to mean more money in circulation that increased prices, now inflation is just an increase in prices in general. The causes of prices going up is dependent on so many factors that it’s easy just say inflation when it really isn’t. Money supply went up, but money velocity plummeted, means money is there but not being used and the money that is is being used is to chase assets, thus creating “inflation”. I would be on the inflation train if wages increased between 2019-2021, they really didn’t while speculative assets have gone parabolic, one has to balance out the other and it’s not going to be an increase in wages.
Homes are up because of low inventory, high demand from those leaving cities, low rates, hit cost of materials and labor. Increased wages did not do this. Add in eviction moratoriums and forebearances you get an artificial price squeeze.

Covid hit the supply chain hard, govt pumped stimulus, thus low supply and stable/increased demand, prices boom. After this summer when reality sets in will be the tell.

If you believe in inflation then buy a house, gold, any physical assets, hopefully one that gives a return

Demanding even more free stuff.

Yes and they're all in the investing thread crying when their investment don't go up 5% a day.

This generation will never experience the purge....

Lol @ Aussiecucks


You guys are getting invaded by MICE and losing the battle

Jfl

This is an interesting point, but hasn't there been a massive increase in the amount of physical currency in circulation?

seen people claiming 2022 is when the stock market crashes like it did in '29

Sounds like you are on the transitory inflation train - I don't really buy it. TBH, wages haven't really increased since the 80s (after adjusting for inflation), but wages for high earners have increased dramatically w/ a corresponding historically low decrease in taxes - and we have seen inflation since the 80s despite wages not increasing for most americans (other than to keep pace with inflation). Debt is at an all time low, which benefits ppl who have the means to be highly leveraged. So more money is out there, it just isn't being spread. I think the recent unnecessary stimuli and high unemployment benefits might have resulted in some transitory inflation, but think that is only a small part of the picture.

I actually bought a lot of gold and silver when covid hit last year, but ETFs, not physical (silver was hnnnng). Have a house, would like another one but can't bring myself to pay these prices. Trying to get into more commodities and value ETFs. But I am kind of a potato when it comes to investing strategy, as I was raised on the Random Walk Down Wall Street philosophy of just DCA into index funds and chill -- that's great except when you have a lump of cash burning a hole in your pocket and assets are at an ATH and no one taught me how to inflation hedge lol.

Your governemnt can litterally arrest you for planning a protest. You have zero freedom of expression.

It shows up on M2 money supply, most of it it’s on the banks reserves. It’s money for banks to loan and spur business growth, but I am pretty not sure a majority of that money is being used. Banks make money off loans, they can’t make money if rates are low, you see that banks are considering lowering credit standards because they need to generate more revenue.

Obviously stimmy checks and unemployment checks helped give a huge boost to money in circulation but that was a temporary boost. In the long run the money “printed” is not *falling from the sky.

Google St. Louis fed. They actually discontinued M2 supply data (lol), it went parabolic but velocity crashed. M2 crashing means less money moving around

I mean I haven’t broken down inflation among CPI to see how the ratio between living costs compared to wages has changed since the early 80s, all I know is rates kept lowering, that inflates assets of all kinds, high earning wealth has increased and average worker hasn’t as much. Under 30 generation gets played a bad hand if they leveraged with student debt, low wages, high cost of living. It’s a bad scenario for the future. Overall it’s really damned if you do damned if you don’t for the fed. Raise rates it collapses, keep rates low and economic growth slows with less lending. We’ve reached a point on inflection .

Every portfolio should have a mix of assests and cash, cash gives flexibility. The MSM narrative that cash is trash and is going to 0 seems like a trap for everyone (under 30 especially ) to go into debt and yolo their money into hedging inflation, then doing the opposite to create more wage slaves.

I think gold silver and is fine long term, just be ready to hold if a rapid sell off occurs, because everything would sell off because of how over leveraged people/markets are.
When a lack of liquidity is present everything fails

Yeah, I actually remember that happening in March of last year - once stonks crashed, everything crashed (commodities, crypto) as ppl tried to liquidate their other holdings to cover their margin calls or whatever.

I agree with OP. March 2020 wasn't a recession. I was planning for a recession prior to Covid.

At least with inflation from the oil crisis they could raise rates, They can't raise rates this time around.