Market Correction

[kemjak57]

Hello everyone, I'm not an investor in shares or anything like that and know very little about economics but recently I have been reading a Blog which is written by financial planners, one of whom I know personally. The Blog is called The Daily Reckoning. It is pretty interesting reading to say the least. Years ago my accountant told me that in years to come the government wont have sufficient funds to pay the superannuation that we are forced to pay for ourselves now.[self employed] After reading a bit of this material I am starting to take it more seriously. As I said I am not skilled in the financial goings on of our country and take a lot of things on face value. We are apparently borrowing 100million K per day just to service our debt in Aus now. True or not, I don't know. If that is the case we are not going to last long financially. These guys are predicting another GFC which will eclipse the one we are still trying to get over from 2007. I wonder if there are any forum followers [Financial industry] who read the blog and if so, what are your thoughts? I would like to know what ordinary folk like me think about the issue as well. I am more cautious now because I am still trying to get back on track in the building industry in Cairns after our last effort. Sorry for a gloomy topic but it may be worth listening to the council of others on the subject. Thanks Rick

 

[Swinging & digging]

You are 100 % right on our Nation been in a very bad economic situation.
It is the same for all western developed nations and is catching on in China.

I am a bit confused by your comment, "that in years to come the government won,t have sufficient funds to pay the superannuation that we are forced to pay for ourselves now" ?

With your super if you are employed by a company you are legislated to receive 9.5 % of your base earnings as Super contributions, these funds go into your super account minus the 15 % contribution tax the ATO takes. If you are self employed you are meant pay into your super yourself out of your earnings and the government ATO still takes the 15 % contribution tax.

For some government employed people there is a super scheme that is called defined benefits, i don,t really know how it works though the nations tax payers pay for it via their taxes, if the stock market tanks this super is unaffected as the tax payer supports the loss?

Yes we as a nation are paying interest on loans the government has taken to build things and run all the government services both at a state and federal level. At the moment we have historically low interest rates so this interest bill is lower than it would otherwise be. Sooner or later interest rates will rise and the servicing costs will increase and as a nation we are living beyond our means and not reducing this debt.

For the most part the average Aussie in the street knows very little about what is going on behind the scenes and most demand lots of free stuff ( government hand outs ) without realising all this is funded by the tax payers of the nation. One does not have to look far into seeing significant waist at a government level. For some reason Australia is paying for the search for MH 370 which after over a year has not found any trace of the missing plane? Why doesn,t the airlines insurance policy pay for this?

Foreign aid? Do we need to give money away to nations that hate us?
A little while back a large list of companies not paying tax was posted around online? is there any truth in it? what is been done to correct these tax anomalies?

Behind the scene their is a lot going on with the federal government,s tax reform process, from what i am hearing we may be headed for some significant tax increases?
Its part of the reason i am having a fire sale on my assets not that i have much been a rather average aussie blue collar slave who works full time and pays my taxes.

Rick you should be very concerned on where this nation is headed tax and finance wise as our economy is slowing and that is not a good thing.

 

[rocketaroo]

doom and gloom, just live for the day, because its all we really have anyway

 

[Bjay]

I still remember the days of 17 / 20 percent interest rates as im sure lots would. The thing that scares me is that all the the young people now days have never seen that , also the banks don't ever care that it will happen again , they just keep lending. Back 20 years ago you'd be lucky to get a loan for double your yearly income let alone five or six times as it seems to be now. I think we're in for a massive blowout soon unfortunately.

 

[Guest]

Get your super out now. The iminent GFC will make the 1930 depression look like a walk in the park. When it hits, the fat-cats will take the lot, and people will be resorting to cannibalism in the cities.

Laugh as you will........

 

[thedigger]

Tim
You could not have said it better
People have got to wake up,watch Mike Maloney he explains how this system will implode.

https://www.youtube.com/watch?v=iFDe5kUUyT0

Regards Frank

 

[rc62burke]

grow your own food harvest game meat & find plenty of gold oh & have Guns lots of Guns & ammo!!

 

[Heatho]

The coming war with China will sort it all out, war is great for the economy, every time there is a world war the worlds economies start thriving again with all the rebuilding, re-stocking and recovery. No good if you're the cannon fodder though.

With all the doom and gloom economic stuff you can blame our useless leaders for selling everything off but the kitchen sink, also blame the greedy bankers, also blame the government for allowing so much foreign investment and allowing all our manufacturing companies to set up off shore all the while setting up free trade agreements with countries who want to overtake us. They have been basically giving away our resources for next to nothing. Soon we won't even have anything to eat as China will own all our farms and other food companies.

The problem with super annuation is that it exposes a whole lot of people to the share market who never wanted to be exposed to it in the first place, it's basically just gambling with everyones future. If I were the nations leader I would ban super from being exposed to the share market and set it up as a money pool the government can draw money from for big infrastructure projects and pay a guaranteed interest rate and help the money grow instead of it all going into a dodgy share market gambling casino and lining the pockets of scumbag "financial advisors".

 

[Heatho]

oh yeah, wait till we have negative interest rates here where you pay the bank to mind your money for you, then they can just take it when they are feeling poor and need to be propped up.

 

[rotor]

I'm with you Tim - the older I get the more cynical I get ......

 

[Guest]

Amen Heatho. And that level of criminality deserves the harshest of penalties. The Global Ponzi Scheme is a parasites heaven. The whoring off of Australia by elitist pigs needs to be reversed altogether. We should have been making solar electric cars here in the 1980s, and we should be gearing up scaled-to profit solar panel and storage battery plants yesterday. The money being wasted on poxliticians and feel-good cotton-wool-isms should be spent opening up the outback by connecting the Ord to the Darling and de-centralising EVERYTHING.

And refining and value-adding, manufacturing and assembling, EVERYTHING in-situ, on-site or in Australia. No matter what the initial cost may be the result is the only acceptable outcome.
Cities make good targets for Chinese and American bombs and are breeding grounds for disparity, complacency, ignorance and contempt.

 

[Phoenix76]

Yeak kemjak I get emails from the same mob every day. I do have a background in all this nonsense, and a lot of what they put up makes a lot of sense. It also supports my own gut feel that we are going to get worse before (if) we get better.

Luckier than some I guess, I'm a pensioner with my own home (paid off) and little or no debt. But I'm scared for my boys, 26 & 24. They're bloody good workers but the job market is very hard up here in Qld.

At least I can generally get a bit extra through prospecting and recycling (especially e-waste - more gold). But don't let anyone tell you that the economy is good coz it ain't.

 

[Swinging & digging]

Tim we can not take out our Super money!
The criminals in government and the banksters have locked in our money in their failed ponzi scheme.

The cracks in the western civilisation economies are about to explode, we are heading into a deflation period where asset prices will fall and it will not last long.
It will be followed by a period of hyper inflation which will destroy our entire economy.

I am hoping the government and banksters will go down with the sinking ship.

Mike Maloney has some great information on his U tube account, i found it years ago and everything he has said is unfolding right now.

 

[HeadsUp]

The coming war with China will sort it all out, war is great for the economy, every time there is a world war the worlds economies start thriving again with all the rebuilding, re-stocking and recovery. No good if you're the cannon fodder though.

With all the doom and gloom economic stuff you can blame our useless leaders for selling everything off but the kitchen sink, also blame the greedy bankers, also blame the government for allowing so much foreign investment and allowing all our manufacturing companies to set up off shore all the while setting up free trade agreements with countries who want to overtake us. They have been basically giving away our resources for next to nothing. Soon we won't even have anything to eat as China will own all our farms and other food companies.

The problem with super annuation is that it exposes a whole lot of people to the share market who never wanted to be exposed to it in the first place, it's basically just gambling with everyones future. If I were the nations leader I would ban super from being exposed to the share market and set it up as a money pool the government can draw money from for big infrastructure projects and pay a guaranteed interest rate and help the money grow instead of it all going into a dodgy share market gambling casino and lining the pockets of scumbag "financial advisors".

stock brokers and "financial advisors" are in the business of clipping your ticket as you get off and on the train , they dont give a **** if you lose it all or win a little but there is a very good chance they will be telling you to buy whatever they need to offload and vice versa.

you are just meat on the butchers block.

most profits in shares are made through insider trading. if any brokers want to try and sue me for that i can shut them up in milliseconds by stating a few facts and dropping a few documents in the right places . i think they would prefer me to shut up.

when it comes to futures markets , they are controlled heavily by the biggest brokers using trader bots ( software trading black box systems ) that can make the markets dance and milk profits out of them whichever way they run , the biggest profits are obtained by the brokers / banks that are the quickest to fine tune their black boxes and the computer systems that run them.

the share market is not a place for mum and dad investors anymore , its a place where robot black boxes will fight it out until he day the system implodes.

 

[Goldtarget]

As a new adult I believed initially in the concept of super. A lot of the structure and outcomes made perfect sense. Help the individual to create a nest egg from their own worth. 10% is a perfect percentage and one I already subscribed to.

The reality two decades on is this system has been perverted and misdirected to the point it does not resemble anything like the stellar concept it could be or was. I think the post gfc result underlined it's status as just another cog in the machine to leverage advantage against the common folk.

Tax on the way out, ever widening retirement/access ages is shamefully against fairness, and the last kicker for me to killing the dream is the notion that super may be dispensed to next of kin when you pass before retirement but cannot be accessed but placed in the recipient's super holdings instead.

Sad but true my blind and resolute adherence to sound practice to actively manage my super has shown great results but is about as useful as monopoly money thanks to all the tinkering. I could buy two houses tomorrow but alas not one today. Total scam.

The more time I spend reviewing things the more I feel like I do about my super with all things financially, the stock market, financial advice,investing, insurance, tax, credit, it's all versions of the same scam, if there ever was a time you could trust in any of it that time has long past.

 

[Guest]

My boss at the time had us contributing super in '88. Federation was the company. In '92 they were taken over by Australian Primary (now Prime).
My first 4 years of super "disappeared".

 

[kemjak57]

I am concerned enough to be heading towards having my home sold by June and as little debt as I can have. My credit cards are going to be cut up asap and my family is going to endeavour to live within our means. That's how it used to be with my parents. I am guilty of getting duped by the notion that debt is a good thing. I know it is necessary for home ownership and business related stuff but the rest of it should be bought with money you have saved not borrowed. its time to be more diligent with what I have worked for for the last 43 years. Good luck for the future everyone. Cheers Rick

 

[Goldtarget]

As an aside (apologies for highjacking) every single year I've demanded my payment back from any "financial" advice fee any of my super accounts have charged. If the agent can not prove they provided advice they cannot charge a fee. General recommendations about holdings that come from the holder not the agent cannot be charged for. In round figures that keeps about $300 annually in my accounts. I got my father back around $2500 in fees he had been charged but received nothing for at my insistence after pointing this out to him. I would hate to think what it's costing the people's of the nation.

 

[Redfin]

My first 4 years of super "disappeared".

Have you searched for it at all?
http://supersearch.com.au/find-your-super-for-free/

So many people who regularly move about don't bother to chase their super up.

 

[Guest]

Yes several times over the years. Most recently when I amalgamated all my work Supers. Timber Industry and Defence into Prime, that's primary Industry, which is the one used by most cockies.
Swinging and digging-you can take your super out if you move overseas permanently, or can prove extreme hardship. I could probably do the latter, but as I have been unfairly targeted and criminalised by the system I will never be issued with a "leave pass" from this fascist and dictatorial Orwellian regime. Once Mum passes I will probably move to somewhere in the Pacific where no Visa is required by Australians.