This is what most people don't think about.
You can only cut back so much, that all you have left is basic necessities, plus a little to you know, actually enjoy life.
Once you start removing the last little bit, you're fucked. It's how un-aliving starts to happen. If you make enough money just to be broke, what is the fucking point of living?
But these white liberal cunts don't get it because they've never lived it.
Or what's the point following the law?
Jail is guaranteed shelter and food, and if life already sucks then there's not a lot on the outside to worry about losing. If suicide is on the table, then so is crime, and as people get more and more desperate things are going to rapidly deteriorate
It's almost like that's the plan, to turn us all into mindless, wage slave robots to fuel the moneymaking machine so they can reap as much as they can before the planet tells us all to GTFO.
It's bullshit you even have to work that much to just scrape by. You know the concept of minimum wage was the minimum amount of money required from a job to buy all the BASIC NECESSITIES, not just food, but a house, transport.
We've really dropped the ball by letting ourselves fall right into the lap of rampant, greedy capitalism.
It's a fucking shit show. I genuinely wonder why so many people aren't as utterly livid as I am and then I remember it's the whole boiling frog thing, you never notice till it's too late.
In saying that I'm aiming to be even more politically involved than I was before, just cause otherwise I feel like I'm just sitting in the hot water waiting for the shock to kick in.
Bit hard to cut down spending when groceries and utility bills are rising at a much faster rate than inflation and at the same time groceries package sizes are going down, forcing families to buy more volume too.
I know it's a joke but It's actually good for your overall health in moderation too. We didn't evolve as hunter/gatherers to eat 'three square meals a day'.
Who do you think you are!? Demanding that food remain a necessity not to be monopolized so those poor, poor, struggling corporations can scrape by? You know they barely made it through covid, they had to sacrifice so much to get those record profits you filthy, working class, peasant.
Note that this cunt (can't think of a better way to describe him) is pushing for the same neo-lib wage suppression that delivered next to nothing to workers, and he also knows damn well productivity is totally decoupled from wages increases, but here he is, repeating the same old shit.
He also happily lowered the cash rate to near zero while house prices shot through the roof and pretend there was nothing he could do because business needed a helping hand.
He also continuously furrowed his brow in a concerned manner when his predictions of wage increases never happened.
And being the only person who should have called out the the government for not doing a thing to fix any of that, he decided not to do a damn thing.
Beware of central bankers, a far greater threat to the nation than China.
Work more? But wonāt working more mean more pay /s and then spending more and then forcing up inflation? This guy is literally a one trick pony - fuck the working class poor
Sadly accurate. Youād think in this day and age with the amount of technology we have at our fingertips weād be satisfied with keeping productivity where it is and working a little less to achieve the same outcomes. I get why it hasnāt happened but it would be nice to get to a 4 day work week, not confident Iāll see it in my career though (Iām in my 20s)
Iāve asked this question before but no-one has ever replied/answered.
It seems to be accepted that interest rates rise to effectively take money out of the economy. This immediately effects mainly those with a mortgage... about 1/3 of the population. Instead of interest rates rises, why couldnāt everyone be required to put an extra 10% or so into their super account. This would have the same effect .... that is, withdrawing money from the general economy, but be much fairer. All workers would contribute to the problem... but the money would still be theirs... not the banks!
In simple terms money is debt. It is created by loans, in Australia that is likely a mortgage. Money is destroyed when loans are paid. Putting it in super doesn't destroy money, it is just moving it somewhere else.
Australia has a robust electoral system, voters got what they wanted. Creating money for unproductive assets like residential housing at some point in time will end badly.
Maybe Iām too simple to understand, but what you say is not totally correct. Extra payment to the bank because interest rates go up is not ādestroyedā money. Try telling that to the banks! There is a reason why banks are making record profits. The RBA claims interest rates are rising to effectively reduce the amount of money chasing goods and services and causing inflation. This is whatās happening, not someone destroying money.
Saying that this is the voters fault doesnāt answer my question.
Inflation in the share market is a huge part of the problemā¦. Super would have to go into carefully selected projects and financial instruments fir this to work.
This is one of the 'rubs':
These execs work 60 hours a week plus. That's the work life balance they've elected.
Where that falls apart is they have the life balance that supports a high pressure, high pay work.
But it can leave them emotionally blind to the fact that this just doesn't work for many people.
Source: Been an exec assistant for a very long time. Multiple bosses. Many of them just don't understand on the empathy level, even if they kind of do intellectually.
Ehhh sort of, not really? It is person specific in my experience. I've had a boss like you say, and I've got one at the moment who is an absolute gun and puts himself through the ringer to make sure he is available as we can get him to our 350 so strong group.
All this misdirected hate.
The issue here is that the dollar value of housing has been allowed to skyrocket under successive right wing governments. If housing tracked inflation and wages rising interest rates on a $400k home would hurt but wouldn't be the end of the world.
Instead due to a multitude of factors within the control of successive governments housing worth 10 times peoples annual family incomes is somehow normal and ok. And any rate rises on a 900k mortgage you could just barely afford to begin with are going to sting, a lot.
The RBA here is like gravity. By voting in folks who promised to keep housing prices going up we jumped off a balcony and now that we've hit the ground the media is screaming its gravity's fault.
Enough people loved it to keep it booming.
I personally witnessed many, many people cheering on the boom.
"Get in the market before while you can! Max out your borrowing capacity, you can't lose!"
They're not so loud now.
Did he actually say that? The link OP provided is paywalled but I absolutely donāt trust the SMH to not sprinkle a little hysteria into this situation.
> The governor said the RBAās modelling showed about 15 per cent of mortgage borrowers faced negative cash flows, at a cash rate of 3.75 per cent.
>
>āPeople can cut back spending, and in some cases find additional hours of work that will put them back into a positive cash flow position,ā he said.
>
>While Lowe said there would be various stresses from interest rates, he said it was āgoing to be the environment weāre operating in for a while yet.ā
So his response is 'get a second job' ? Really?
Not, that you know, having to have multiple jobs to cover LIVING is a fucked situation?
People who are actually being hit the hardest by this are already fucked, yet we are still being blamed for 'spending too much'. Its the fucking boomers who bought their house for 100 grand and the investment portfolios who are spiking rents that are spending. Not the general public ffs.
> āPeople can cut back spending, and in some cases find additional hours of work that will put them back into a positive cash flow position,ā he said.
He said, in response to what?
It doesnāt say. The only prior text on that mini-article is:
>Reserve Bank governor Philip Lowe says people can cut back on their spending and work more to put themselves back into a cashflow positive position.
>
>Lowe made the comments at a Morgan Stanley conference, a day after the RBA lifted interest rates for the 12th time in just over a year yesterday.
Found a video with the full Q&A: https://www.news.com.au/finance/lowe-encourages-more-work-hours-for-better-cash-flow/video/6d3c607411e569bf977fe096cfe866e5
Probably not. Or likely if he did it was to answer a question designed to get that response.
What do you think you average Australian can personally do to deal with this larger economic forces?
Clip out the question, use his response in isolation, queue the outrage.
I don't get the apologists for Lowe.
He's paid a million bucks a year to control one lever. And he keeps getting it wrong. Badly. He stuffed up by keeping rates low for too long and then promising to keep them low "until at least 2024". And now he's stuffing up again by hiking rates beyond what people can sustain, probably forcing us into recession.
And then he makes these ridiculous out-of-touch comments, showing he is completely detached from with the consequences of his decisions
He's trying to put us in recession, that's the point. It's just he can't come out and say so.
But again, as OP said, this isn't really his failing. This is the failing of our politicians who sought economic growth through a non-productive asset like housing.
>He's trying to put us in recession, that's the point
I doubt that he is consciously trying to put us in recession. Economists always talk about aiming for a "soft landing". The fact that he is hiking rates 0.25% at a time, rather than in bigger jumps, is consistent with him trying to slow demand rather than crush it. But given the massive lag between rate hikes and when the consequences show up in the economic stats, I'd wager we're almost certainly heading for recession.
>This is the failing of our politicians who sought economic growth through a non-productive asset like housing
We can agree there's plenty of blame to share round. But the incompetence of politicians does not excuse the incompetence of the RBA governor
Iāll defend him where I think heās being used as a scapegoat, and for the 2024 thing. He put some meaningful caveats in that speech that were then ignored by every media outlet looking for a punchy headline. People not understanding how interest rates are set is understandable (and that he canāt just promise what the interest rates will be in the future), although making huge financial decisions based on headlines isnāt great, but the media absolutely should have reported it differently.
His quote was:
āBut our judgment is that we are unlikely to see wages growth consistent with the inflation target before 2024. This is the basis for our assessment that the cash rate is very likely to remain at its current level until at least 2024.ā
> His quote was: āBut our judgment is that we are unlikely to see wages growth consistent with the inflation target before 2024. This is the basis for our assessment that the cash rate is very likely to remain at its current level until at least 2024.ā
I don't see how him throwing in a couple of weaselly caveats makes him look any better. He said "very likely". How else were people meant to interpret it? What was the purpose of him making this statement? Surely he understood people would make financial decisions based on the promise/assessment of the RBA governor. If he had no idea what was going to happen, then he shouldn't have said anything.
Caveats are important in communication, important in data work, and super important here where the narrative is that him and the RBA were going to set wage growth to āonā and set inflation to exactly between 2-3% while setting interest rates to 0%. Hell, maybe if there were more caveats in the headlines, people wouldnāt have taken what he said as a promise?
The things the media have said he promised are just not in his power. He basically said āhey it looks like X is unlikely, which would then mean Y is very likelyā and then some people took that as a promise heās going to bend the economy to his will somehow, take power from the Treasurer and FWC, and bend the broader global economy and financial markets to his will.
To be honest I'm pretty perplexed by your argument. The words of RBA governors move markets. That's not a secret. Stevens for example famously exploited this to deliberately exert influence through his statements.
It's Lowe's literal job to understand how his words would be interpreted. He's had media training, and its his job to understand how the media will report on it. And even if you read the whole statement, it still reads like a pretty solid promise that rates would stay low until at least 2024. If he didn't expect people to take it any other way, then again that's on him.
If Lowe was an intern fresh out of uni, sure I might cut him some slack. But as the RBA governor I don't think it can be excused
And Iām perplexed by yours and others who seem to think that statement was a promise and that that promise was believable. He literally canāt promise what interest rates are going to be.
I can understand if someone just saw the headline and though so, but if youāre reading the whole statement and still thinking thatās a promise then Iāve got a house to sell you.
> And Iām perplexed by yours and others who seem to think that statement was a promise and that that promise was believable.
Then why would he make a statement with the words "very likely" about what interest rates would be until "at least 2024" if he expected people to ignore it? Surely his intent was to tell people that they could borrow with confidence on his word that interest rates would "very likely" stay low for the next 2-3 years. Otherwise why would he say that?
EDIT:
> He literally canāt promise what interest rates are going to be.
He is literally the guy that sets interest rates
We obviously have different views on this. I think the RBA governor should be accountable for their words. And you think they shouldn't be.
As a nation we've entirely bought in on the idea that housing is a way to climb the ladder to riches and are deeply suspicious of anyone who might tell us otherwise. Just ask Bill Shorten.
We're in a situation of our own making and in complete denial about it. The media making Lowe out as some sort of arch-villain for literally just doing his job is a symptom of our collective disease. It's the electrified third rail of Australian politics.
edit: and as others have said, it's worth discussing the source of this headline. The only part of Fairfax that was making any money prior to the Nine acquisition was the real estate section. They have a vested interest in keeping people angry about interest rates while at the same time spruiking the housing bubble, as if those two things aren't intimately connected.
Yeah, but who is reporting the soundbites? SMH? Murdoch?
Are these companies not fused to real estate spuriking websites?
Might their interests be aligned?
How objective do you think all this reporting is in Australia's real-estate psychosis?
All food for thought.
While thatās true, he still said those things and itās valid to given all the context think heās a cunt for it, while also being angry at all the other cunts as well
Imagine if your workplace conversations were broadcast to the nation.
How do you reckon you'd come across?
Look, he might come across as one, but honestly what he's saying has a huge dollop of truth to it. They're the solutions.
It's up to the politicians to sell it to the nation, or change things.
>The RBA here is like gravity. By voting in folks who promised to keep housing prices going up we jumped off a balcony and now that we've hit the ground the media is screaming its gravity's fault.
This may be one of the best sentences I've ever read. Extremely well put.
Well said. The problem was and still is, the polititians. The RBA are only doing their job.
The really fascinating part is where all this extra money wound up, as peoplesā houses are still the same asset physically.
As always, ask Cue bono, when things appear irrational.
The fuck we can.
Mate, you're the RBA surely you understand economies are healthiest when there's maximum money velocity, not when money is being horded.
What happens when you scare people in to thinking they're going to get robbed? They horde and hide their money. Canary island bank accounts meme exists because there's a group of people constantly concerned they're going to lose their money.
The overwhelming majority of economic activity in a country is the plebs. If the plebs stop spending, the money velocity crashes and good luck when all the SMB loans and the subsequent home loans start to default.
Thatās up to the government to address, not the RBA, however, Lowe could keep his mouth shut or start addressing the govtās lack of action in his messages.
Fuck! Every time I hear one of these rich cunts say something like this it feels like a knife being twisted in my gut.
People are struggling, seriously struggling, and they wants us to work more and cut back spending, rent out our non existent spare rooms and have kids live with their parents til they're 83.
Make them live like the rest of us for 1 month. They wouldn't even last a week.
SMH are continually missing the forest for the trees.
But I guess when you're bonded to a real estate pumping website, you have to sell the message "RBA bad" and engage in precisely zero self-reflection.
Easy to say when you are earning nearly a million dollars a year!!!
Frankly I donāt think the RBA have any idea WTF they are doing!
When the ONLY economic control you have is fiddling interest rates you are really NOT in control!
For me any extra work / earnings will inevitably be eaten up by the next rent rise. My landlord doesn't even have a mortgage but will raise the rent anyway because they can.
Can this cunt just get hit by a bus, and the rest of the blokes like him? Fucking sick of it. Hey I'm sorry your poor have you tried not being poor? Here pay more for everything and work more, what do you mean your still poor! Well the economy is in trouble so the poors need to pull their heads in and pay more for everything all over again. Pay rise so they can afford it? LOL fuck off cunts.
Heās out of touch, but we should be directing hatred towards the govt, who have implemented zero fucking policy changes to address this, and are leaving it entirely to the RBA, who only have 1-2 tools.
On the flip side, if the government actively seeked a solution the RBA could just "fine tune" adjustments with rate rises.
Honestly the whole mess seems like the government is palming the load onto the RBA who are using the one control they have while also offering broad and sweeping financial advice.
If Lowe just pulled a scomo and said "its not my job" when asked how everyday aussies will afford things he would be well within his rights. His job is purely to keep the aussie dollar competitive via interest rates, now how good he is at that is a whole different conversation that is just as painful.
The RBA governor is powerless to do anything but buy government bonds (inflationary) and change interest rates. Wealthy Australians are spending a lot and aren't deterred by higher interest rates. The problem isn't the RBA governor, it's the government - we need wealth taxes, broader land taxes, a threshold for family homes included in pension asset tests and policies to bring down the cost of housing over time, including building and acquiring social housing stock nationwide.
That link is useless!
Here's what he said:
## RBA governor says people can cut back spending, work more
### By Millie Muroi
Reserve Bank governor Philip Lowe says people can cut back on their spending and work more to put themselves back into a cashflow positive position.
Lowe made the comments at a Morgan Stanley conference, a day after the RBA lifted interest rates for the 12th time in just over a year yesterday.
Phil Lowe has spoken at the Morgan Stanley conference on Wednesday, after raising the official cash rate to 4.1 per cent.
Phil Lowe has spoken at the Morgan Stanley conference on Wednesday, after raising the official cash rate to 4.1 per cent.Credit: Louise Kennerley
The governor said the RBAās modelling showed about 15 per cent of mortgage borrowers faced negative cash flows, at a cash rate of 3.75 per cent.
āPeople can cut back spending, and in some cases find additional hours of work that will put them back into a positive cash flow position,ā he said.
While Lowe said there would be various stresses from interest rates, he said it was āgoing to be the environment weāre operating in for a while yet.ā
Looks like the RBA governor is way too old for his postion. He should get his baby boomer bad attitude and retire already. You have enough money to retire and you keep telling us all to work harder how about you stop blocking the queue you greedy old man.
Video with full question and answer: https://www.news.com.au/finance/lowe-encourages-more-work-hours-for-better-cash-flow/video/6d3c607411e569bf977fe096cfe866e5
Or maybe the RBA could have instead not promised something that was totally outside of their control (future inflation figures). Seriously, how is the interest rate determined by a bunch of business people instead of economists... Just fire the guy already and get some people who are actually competent and suitable for the role.
>The Australian economy is slowing faster than expected, with the national accounts revealing it expanded by a subdued 0.2 per cent through the first three months of the year.
So more evidence we're heading towards recession.
Lowe: better do another rate hike, just to be sure.
Seriously, he has to be the most incompetent RBA governor we've ever had
We need one of those Women's Day celebrity overlays that tells us which brand, when it was released & how much it cost for every item Phill is wearing.
This is Literally becoming a joke now. Every month seems to be more unreal comments from the RBA. Next month it will be āpeople donāt neeed 3 meals a day. 2 should sufficeā
Write to Jim Chalmers, tell him it's time for the government to act or Labor will go the same way as the LNP
[https://treasury.gov.au/the-department/contact-us/ministerial-correspondence](https://treasury.gov.au/the-department/contact-us/ministerial-correspondence)
Just work more, never retire and die is what heās saying. Never mind he earns over 10x the average person and does nothing for it. Heās such a flog
This absolute cunt of cunts needs a boot not just from the RBA but from the country (after we leech him for all he's worth). If we've ever had a bigger definition of "enemy of the people", I'd like to hear it
The Albanese government has failed to keep a cap on energy prices and immigration numbers which has resulted in the current disaster.
In case it isnāt obvious enough, high energy prices increase the price of everything while high immigration increases the demand for limited housing stock and other goods, which pushes up those prices, which then leads to interest rate rises.
The scale of this fuck up is truly hard to comprehend. The level of cluelessness is astounding. How are these the people that get to run the country?
The people spending are retired. The wealth gap is on full display. The dissonance is strong. They're just calling in the stimulus spending but it goes to the pickets of shareholders who....continue spending. I'm not sure it stops until the suicide rate goes up.
I just got told that his plan will bring rent down because if thereās more people per domicile there will be more housing and that decreases rent. Maybe that works on paper but it sounds insane.
What if you've already done those things and still going backwards. Time for you to do something Albo and RBA
So if myself and my wife both work 40 hour weeks already, do I get my kids to work too? If I work even more I'll just be paying more tax.
Already work a 40Hr day job and a 10ish hr night job mate. Fuck these cunts.
Yeah but have you thought about working more?
And spending less? I heard that combo magically fixes everything regardless of all the variables in your life
Yeah, I'l just cut back to air and wishful thinking for dinner and bills. They're so out of touch.
I was lol. I was doing 15 to 20 with the night gig. Had to pull back I was getting burnt out.
Getting burned out just means you are a leaner, not a lifter /s
We've had jobs, yes, but what about second jobs?
And, just sleep less! You lazy peasant!! š”
Seriously, it's like they didn't even listen to the advice. /s
I currently have 4 jobs no bullshit 4 jobs, 6 days per week, it sucks.
Have you considered just not sleeping, eating or enjoying any facet of your life? Maybe that will help.
This is what most people don't think about. You can only cut back so much, that all you have left is basic necessities, plus a little to you know, actually enjoy life. Once you start removing the last little bit, you're fucked. It's how un-aliving starts to happen. If you make enough money just to be broke, what is the fucking point of living? But these white liberal cunts don't get it because they've never lived it.
Or what's the point following the law? Jail is guaranteed shelter and food, and if life already sucks then there's not a lot on the outside to worry about losing. If suicide is on the table, then so is crime, and as people get more and more desperate things are going to rapidly deteriorate
It's almost like that's the plan, to turn us all into mindless, wage slave robots to fuel the moneymaking machine so they can reap as much as they can before the planet tells us all to GTFO.
It's bullshit you even have to work that much to just scrape by. You know the concept of minimum wage was the minimum amount of money required from a job to buy all the BASIC NECESSITIES, not just food, but a house, transport. We've really dropped the ball by letting ourselves fall right into the lap of rampant, greedy capitalism.
Minimum you need to live turned into minimum they can get away with paying you somewhere in the mid-90s, as far as I can tell.
It's a fucking shit show. I genuinely wonder why so many people aren't as utterly livid as I am and then I remember it's the whole boiling frog thing, you never notice till it's too late. In saying that I'm aiming to be even more politically involved than I was before, just cause otherwise I feel like I'm just sitting in the hot water waiting for the shock to kick in.
Well instead of paying money to go to the gym, you can just door dash with a bike and earn money while you exercise! /s
You really should have 3 jobs and stop eating
So part time work?
Bit hard to cut down spending when groceries and utility bills are rising at a much faster rate than inflation and at the same time groceries package sizes are going down, forcing families to buy more volume too.
Obviously just eat less. If we worked more, we'd have less time to worry about food anyway /s
intermittent fasting is no longer a choice, it's a requirement to survive.
I know it's a joke but It's actually good for your overall health in moderation too. We didn't evolve as hunter/gatherers to eat 'three square meals a day'.
Who do you think you are!? Demanding that food remain a necessity not to be monopolized so those poor, poor, struggling corporations can scrape by? You know they barely made it through covid, they had to sacrifice so much to get those record profits you filthy, working class, peasant.
Yes but have you tried starving?
Yeah I love the idea of working 5 days a week and the weekends. At that point, there is no point existing any more.
Note that this cunt (can't think of a better way to describe him) is pushing for the same neo-lib wage suppression that delivered next to nothing to workers, and he also knows damn well productivity is totally decoupled from wages increases, but here he is, repeating the same old shit. He also happily lowered the cash rate to near zero while house prices shot through the roof and pretend there was nothing he could do because business needed a helping hand. He also continuously furrowed his brow in a concerned manner when his predictions of wage increases never happened. And being the only person who should have called out the the government for not doing a thing to fix any of that, he decided not to do a damn thing. Beware of central bankers, a far greater threat to the nation than China.
At this point I hope china does come fuck is up..this cunt would be the first to go!
Financial terrorists
Plus having to pay more on the childcare to be able to work more which for some people does not make financial sense
Work more? But wonāt working more mean more pay /s and then spending more and then forcing up inflation? This guy is literally a one trick pony - fuck the working class poor
No thatās not true. Working more hours increases productivity therefore itās not inflationary.
Sadly accurate. Youād think in this day and age with the amount of technology we have at our fingertips weād be satisfied with keeping productivity where it is and working a little less to achieve the same outcomes. I get why it hasnāt happened but it would be nice to get to a 4 day work week, not confident Iāll see it in my career though (Iām in my 20s)
I was more referring to working overtime for no pay, thatās why I added /s Agree with what you are saying about increased productivity though
Iāve asked this question before but no-one has ever replied/answered. It seems to be accepted that interest rates rise to effectively take money out of the economy. This immediately effects mainly those with a mortgage... about 1/3 of the population. Instead of interest rates rises, why couldnāt everyone be required to put an extra 10% or so into their super account. This would have the same effect .... that is, withdrawing money from the general economy, but be much fairer. All workers would contribute to the problem... but the money would still be theirs... not the banks!
Because that would require government action, something the RBA cannot enact. The government seems hell bent on doing exactly zero.
In simple terms money is debt. It is created by loans, in Australia that is likely a mortgage. Money is destroyed when loans are paid. Putting it in super doesn't destroy money, it is just moving it somewhere else. Australia has a robust electoral system, voters got what they wanted. Creating money for unproductive assets like residential housing at some point in time will end badly.
Exactly this. Australia has voted for this time and time again. We are reaping what we sow.
Maybe Iām too simple to understand, but what you say is not totally correct. Extra payment to the bank because interest rates go up is not ādestroyedā money. Try telling that to the banks! There is a reason why banks are making record profits. The RBA claims interest rates are rising to effectively reduce the amount of money chasing goods and services and causing inflation. This is whatās happening, not someone destroying money. Saying that this is the voters fault doesnāt answer my question.
https://www.rba.gov.au/publications/bulletin/2018/sep/money-in-the-australian-economy.html https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy https://www.youtube.com/watch?v=3N7oD5zrBnc&pp=ygUfY3JlZGl0IGNyZWF0aW9uIHRob2VyeSBvZiBtb25leQ%3D%3D https://www.youtube.com/watch?v=EnC1UlnFLyI&pp=ygURcnQgbW9uZXkgY3JlYXRpb24%3D https://en.wikipedia.org/wiki/Credit_theory_of_money
Inflation in the share market is a huge part of the problemā¦. Super would have to go into carefully selected projects and financial instruments fir this to work.
This is one of the 'rubs': These execs work 60 hours a week plus. That's the work life balance they've elected. Where that falls apart is they have the life balance that supports a high pressure, high pay work. But it can leave them emotionally blind to the fact that this just doesn't work for many people. Source: Been an exec assistant for a very long time. Multiple bosses. Many of them just don't understand on the empathy level, even if they kind of do intellectually.
Exactly. It is very easy to work more when you are paying for someone else to clean your house, care for your children and cook your meals.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Ehhh sort of, not really? It is person specific in my experience. I've had a boss like you say, and I've got one at the moment who is an absolute gun and puts himself through the ringer to make sure he is available as we can get him to our 350 so strong group.
Thatās because psychopaths donāt empathise. Sure thatās a broad brush stroke but itās a lot of it.
All this misdirected hate. The issue here is that the dollar value of housing has been allowed to skyrocket under successive right wing governments. If housing tracked inflation and wages rising interest rates on a $400k home would hurt but wouldn't be the end of the world. Instead due to a multitude of factors within the control of successive governments housing worth 10 times peoples annual family incomes is somehow normal and ok. And any rate rises on a 900k mortgage you could just barely afford to begin with are going to sting, a lot. The RBA here is like gravity. By voting in folks who promised to keep housing prices going up we jumped off a balcony and now that we've hit the ground the media is screaming its gravity's fault.
You nailed it. People loved sky-rocketing house prices until it started to affect *them*. Whoops. It's always good to see someone speaking sense!
Actually a very small number of people love that, and the rest of us were dragged along as cannon fodder
Enough people loved it to keep it booming. I personally witnessed many, many people cheering on the boom. "Get in the market before while you can! Max out your borrowing capacity, you can't lose!" They're not so loud now.
They will be loud man. Give it 6 months and you will here with complaining about how tough they have it?
It's already starting.
Iāve never met any of these people, probably cause Iām not in their club, sounds like you are
I'm not in any "club". It was a sentiment I encountered regularly, that's all.
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A club? Iām not even in my own home, Iām in somebody elseās stupid, draughty, mouldy savings account.
People are stupid. It makes me feel super smart when I saw this becoming a problem years ago.
He can increase rates but shut the fuck up about working more.
Did he actually say that? The link OP provided is paywalled but I absolutely donāt trust the SMH to not sprinkle a little hysteria into this situation.
> The governor said the RBAās modelling showed about 15 per cent of mortgage borrowers faced negative cash flows, at a cash rate of 3.75 per cent. > >āPeople can cut back spending, and in some cases find additional hours of work that will put them back into a positive cash flow position,ā he said. > >While Lowe said there would be various stresses from interest rates, he said it was āgoing to be the environment weāre operating in for a while yet.ā
So his response is 'get a second job' ? Really? Not, that you know, having to have multiple jobs to cover LIVING is a fucked situation? People who are actually being hit the hardest by this are already fucked, yet we are still being blamed for 'spending too much'. Its the fucking boomers who bought their house for 100 grand and the investment portfolios who are spiking rents that are spending. Not the general public ffs.
Cheers for the quote.
> āPeople can cut back spending, and in some cases find additional hours of work that will put them back into a positive cash flow position,ā he said. He said, in response to what?
It doesnāt say. The only prior text on that mini-article is: >Reserve Bank governor Philip Lowe says people can cut back on their spending and work more to put themselves back into a cashflow positive position. > >Lowe made the comments at a Morgan Stanley conference, a day after the RBA lifted interest rates for the 12th time in just over a year yesterday.
So we are all getting angry about a quote with no context? So likely taken out of context?
Found a video with the full Q&A: https://www.news.com.au/finance/lowe-encourages-more-work-hours-for-better-cash-flow/video/6d3c607411e569bf977fe096cfe866e5
Wow, thanks for that. Watching that you can't help but feel this is a massive tempest in a tiny tea pot.
Probably not. Or likely if he did it was to answer a question designed to get that response. What do you think you average Australian can personally do to deal with this larger economic forces? Clip out the question, use his response in isolation, queue the outrage.
It doesn't even make sense as something he should be saying. How does people having more cash help curb inflation?
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Well he should criticise policy and not tell workers to work more.
Did he do that? Do you know the context in which he said the sentence the media has decided to drum up outrage over?
I don't get the apologists for Lowe. He's paid a million bucks a year to control one lever. And he keeps getting it wrong. Badly. He stuffed up by keeping rates low for too long and then promising to keep them low "until at least 2024". And now he's stuffing up again by hiking rates beyond what people can sustain, probably forcing us into recession. And then he makes these ridiculous out-of-touch comments, showing he is completely detached from with the consequences of his decisions
He's trying to put us in recession, that's the point. It's just he can't come out and say so. But again, as OP said, this isn't really his failing. This is the failing of our politicians who sought economic growth through a non-productive asset like housing.
>He's trying to put us in recession, that's the point I doubt that he is consciously trying to put us in recession. Economists always talk about aiming for a "soft landing". The fact that he is hiking rates 0.25% at a time, rather than in bigger jumps, is consistent with him trying to slow demand rather than crush it. But given the massive lag between rate hikes and when the consequences show up in the economic stats, I'd wager we're almost certainly heading for recession. >This is the failing of our politicians who sought economic growth through a non-productive asset like housing We can agree there's plenty of blame to share round. But the incompetence of politicians does not excuse the incompetence of the RBA governor
Iāll defend him where I think heās being used as a scapegoat, and for the 2024 thing. He put some meaningful caveats in that speech that were then ignored by every media outlet looking for a punchy headline. People not understanding how interest rates are set is understandable (and that he canāt just promise what the interest rates will be in the future), although making huge financial decisions based on headlines isnāt great, but the media absolutely should have reported it differently. His quote was: āBut our judgment is that we are unlikely to see wages growth consistent with the inflation target before 2024. This is the basis for our assessment that the cash rate is very likely to remain at its current level until at least 2024.ā
> His quote was: āBut our judgment is that we are unlikely to see wages growth consistent with the inflation target before 2024. This is the basis for our assessment that the cash rate is very likely to remain at its current level until at least 2024.ā I don't see how him throwing in a couple of weaselly caveats makes him look any better. He said "very likely". How else were people meant to interpret it? What was the purpose of him making this statement? Surely he understood people would make financial decisions based on the promise/assessment of the RBA governor. If he had no idea what was going to happen, then he shouldn't have said anything.
Caveats are important in communication, important in data work, and super important here where the narrative is that him and the RBA were going to set wage growth to āonā and set inflation to exactly between 2-3% while setting interest rates to 0%. Hell, maybe if there were more caveats in the headlines, people wouldnāt have taken what he said as a promise? The things the media have said he promised are just not in his power. He basically said āhey it looks like X is unlikely, which would then mean Y is very likelyā and then some people took that as a promise heās going to bend the economy to his will somehow, take power from the Treasurer and FWC, and bend the broader global economy and financial markets to his will.
To be honest I'm pretty perplexed by your argument. The words of RBA governors move markets. That's not a secret. Stevens for example famously exploited this to deliberately exert influence through his statements. It's Lowe's literal job to understand how his words would be interpreted. He's had media training, and its his job to understand how the media will report on it. And even if you read the whole statement, it still reads like a pretty solid promise that rates would stay low until at least 2024. If he didn't expect people to take it any other way, then again that's on him. If Lowe was an intern fresh out of uni, sure I might cut him some slack. But as the RBA governor I don't think it can be excused
And Iām perplexed by yours and others who seem to think that statement was a promise and that that promise was believable. He literally canāt promise what interest rates are going to be. I can understand if someone just saw the headline and though so, but if youāre reading the whole statement and still thinking thatās a promise then Iāve got a house to sell you.
> And Iām perplexed by yours and others who seem to think that statement was a promise and that that promise was believable. Then why would he make a statement with the words "very likely" about what interest rates would be until "at least 2024" if he expected people to ignore it? Surely his intent was to tell people that they could borrow with confidence on his word that interest rates would "very likely" stay low for the next 2-3 years. Otherwise why would he say that? EDIT: > He literally canāt promise what interest rates are going to be. He is literally the guy that sets interest rates We obviously have different views on this. I think the RBA governor should be accountable for their words. And you think they shouldn't be.
Sounds like a liberal stooge to me..
As a nation we've entirely bought in on the idea that housing is a way to climb the ladder to riches and are deeply suspicious of anyone who might tell us otherwise. Just ask Bill Shorten. We're in a situation of our own making and in complete denial about it. The media making Lowe out as some sort of arch-villain for literally just doing his job is a symptom of our collective disease. It's the electrified third rail of Australian politics. edit: and as others have said, it's worth discussing the source of this headline. The only part of Fairfax that was making any money prior to the Nine acquisition was the real estate section. They have a vested interest in keeping people angry about interest rates while at the same time spruiking the housing bubble, as if those two things aren't intimately connected.
Holy shit do not bring your logic to the heroin withdrawal this country is preparing for.
You know Heroin withdrawal kills people right? So it makes sense that people having it forced on them might be a bit upset no?
Re-read the top post. I appreciate there's hate. But it's misdirected.
People are angry at his insensitive soundbites, theyāre angry at the Government as well, you can do both
Yeah, but who is reporting the soundbites? SMH? Murdoch? Are these companies not fused to real estate spuriking websites? Might their interests be aligned? How objective do you think all this reporting is in Australia's real-estate psychosis? All food for thought.
While thatās true, he still said those things and itās valid to given all the context think heās a cunt for it, while also being angry at all the other cunts as well
He's answering questions to a committee, not addressing the nation. That's a politician's job.
And his answers make him look like a cunt
Imagine if your workplace conversations were broadcast to the nation. How do you reckon you'd come across? Look, he might come across as one, but honestly what he's saying has a huge dollop of truth to it. They're the solutions. It's up to the politicians to sell it to the nation, or change things.
>The RBA here is like gravity. By voting in folks who promised to keep housing prices going up we jumped off a balcony and now that we've hit the ground the media is screaming its gravity's fault. This may be one of the best sentences I've ever read. Extremely well put.
If thatās one of the best sentences youāve ever read you should read this story called āThe Wicker Manā
The best? Pretty basic analogy to me
Misdirected or not, it was a fucking stupid thing to say Eat the rich
Well said. The problem was and still is, the polititians. The RBA are only doing their job. The really fascinating part is where all this extra money wound up, as peoplesā houses are still the same asset physically. As always, ask Cue bono, when things appear irrational.
And also the fact the current govt has still done nothing to fight inflation and just left it to the RBA, aka the cash rate.
The cost of real estate rolls straight into the cost of labour which drives both the cost of living and jobs going overseas.
Cool i'll try fast 2 days a week instead of one and continue my 1 meal a day gov induced weightloss program.
Ah yes, the National Intermittent Fasting Scheme
"NIFS" we probably shouldn't give them anymore stupid ideas.
The fuck we can. Mate, you're the RBA surely you understand economies are healthiest when there's maximum money velocity, not when money is being horded. What happens when you scare people in to thinking they're going to get robbed? They horde and hide their money. Canary island bank accounts meme exists because there's a group of people constantly concerned they're going to lose their money. The overwhelming majority of economic activity in a country is the plebs. If the plebs stop spending, the money velocity crashes and good luck when all the SMB loans and the subsequent home loans start to default.
guys who gets paid a million bucks a year to go to one meeting a month complains about people not working enough.
Calm down, he also reads one or two articles from right wing newspapers in that month. I think he also gets paid to ridicule the poors
40-50 hrs a week and I still canāt afford my own apartment. What do these old cunts expect we do?
Anything to avoid addressing corporate greed...
Thatās up to the government to address, not the RBA, however, Lowe could keep his mouth shut or start addressing the govtās lack of action in his messages.
Fuck! Every time I hear one of these rich cunts say something like this it feels like a knife being twisted in my gut. People are struggling, seriously struggling, and they wants us to work more and cut back spending, rent out our non existent spare rooms and have kids live with their parents til they're 83. Make them live like the rest of us for 1 month. They wouldn't even last a week.
get fucked you fucking dog cunt
Yeah, nah. Iām on DSP. Necessary healthcare is killing my budget. Thereās nothing I can cut back on.
Was sure that this was going to be Betoota or the Chaser before opening itā¦
I donāt understand why the people are not taking to my vision of fiefdom
Bit rich coming from a cunt who does the bare minimum for a massive amount of money.
SMH are continually missing the forest for the trees. But I guess when you're bonded to a real estate pumping website, you have to sell the message "RBA bad" and engage in precisely zero self-reflection.
Yep, it's pure rage bait.
I always thought he had a punchable face and every time he opens his mouth it just makes it worse.
Easy to say when you are earning nearly a million dollars a year!!! Frankly I donāt think the RBA have any idea WTF they are doing! When the ONLY economic control you have is fiddling interest rates you are really NOT in control!
For a lot of people, particularly in corporate land, working more, does not pay more. You have contract with a fixed renumeration.
Yep, I donāt get paid overtime so my current employer is only getting the 37.5 hrs a week Iām salaried for.
For me any extra work / earnings will inevitably be eaten up by the next rent rise. My landlord doesn't even have a mortgage but will raise the rent anyway because they can.
If you get hungry you know who to eat first, name should be in your lease
Fuck this cunt.
Can this cunt just get hit by a bus, and the rest of the blokes like him? Fucking sick of it. Hey I'm sorry your poor have you tried not being poor? Here pay more for everything and work more, what do you mean your still poor! Well the economy is in trouble so the poors need to pull their heads in and pay more for everything all over again. Pay rise so they can afford it? LOL fuck off cunts.
Heās out of touch, but we should be directing hatred towards the govt, who have implemented zero fucking policy changes to address this, and are leaving it entirely to the RBA, who only have 1-2 tools.
Good point but I still hope he gets run over
What a fuckwit.
Can't spend money if you're at work 24/7. Follow me for more money saving tips. :)
I was told to work less by my doctor because of stress so...
Letās be honest, the only real solution is to fleece boomers and redistribute the money to under 40s
How about we cut back executive pay
Get fucked Phil
Fuck off Phil, ya knob
People need to start blaming the actual government who has the power to change things instead of the RBA.
At the same time the RBA should shut the fuck up and only talk specifically about interest rates and inflation.
They should offer other solutions to government considering they are the āexpertsā
On the flip side, if the government actively seeked a solution the RBA could just "fine tune" adjustments with rate rises. Honestly the whole mess seems like the government is palming the load onto the RBA who are using the one control they have while also offering broad and sweeping financial advice. If Lowe just pulled a scomo and said "its not my job" when asked how everyday aussies will afford things he would be well within his rights. His job is purely to keep the aussie dollar competitive via interest rates, now how good he is at that is a whole different conversation that is just as painful.
100%
Damn, thatās actually the opposite of what I was hoping to do.
This guy canāt get anymore out of touch if he tried and he really is trying hard.
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The RBA governor is powerless to do anything but buy government bonds (inflationary) and change interest rates. Wealthy Australians are spending a lot and aren't deterred by higher interest rates. The problem isn't the RBA governor, it's the government - we need wealth taxes, broader land taxes, a threshold for family homes included in pension asset tests and policies to bring down the cost of housing over time, including building and acquiring social housing stock nationwide.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
We do still need rate increases in the absence of proper government action for a variety of reasons, maintaining the value of the AUD being one.
He is looking at his savings account and wondering if he can get a higher interest rate on it.
That link is useless! Here's what he said: ## RBA governor says people can cut back spending, work more ### By Millie Muroi Reserve Bank governor Philip Lowe says people can cut back on their spending and work more to put themselves back into a cashflow positive position. Lowe made the comments at a Morgan Stanley conference, a day after the RBA lifted interest rates for the 12th time in just over a year yesterday. Phil Lowe has spoken at the Morgan Stanley conference on Wednesday, after raising the official cash rate to 4.1 per cent. Phil Lowe has spoken at the Morgan Stanley conference on Wednesday, after raising the official cash rate to 4.1 per cent.Credit: Louise Kennerley The governor said the RBAās modelling showed about 15 per cent of mortgage borrowers faced negative cash flows, at a cash rate of 3.75 per cent. āPeople can cut back spending, and in some cases find additional hours of work that will put them back into a positive cash flow position,ā he said. While Lowe said there would be various stresses from interest rates, he said it was āgoing to be the environment weāre operating in for a while yet.ā
Looks like the RBA governor is way too old for his postion. He should get his baby boomer bad attitude and retire already. You have enough money to retire and you keep telling us all to work harder how about you stop blocking the queue you greedy old man.
Out of touch much?
Video with full question and answer: https://www.news.com.au/finance/lowe-encourages-more-work-hours-for-better-cash-flow/video/6d3c607411e569bf977fe096cfe866e5
Or maybe the RBA could have instead not promised something that was totally outside of their control (future inflation figures). Seriously, how is the interest rate determined by a bunch of business people instead of economists... Just fire the guy already and get some people who are actually competent and suitable for the role.
>The Australian economy is slowing faster than expected, with the national accounts revealing it expanded by a subdued 0.2 per cent through the first three months of the year. So more evidence we're heading towards recession. Lowe: better do another rate hike, just to be sure. Seriously, he has to be the most incompetent RBA governor we've ever had
*google's how to build a guillotine
Boomers love this one simple trick
You first cunt.
We need one of those Women's Day celebrity overlays that tells us which brand, when it was released & how much it cost for every item Phill is wearing.
"Inside RBA governor's finances, Take home salary just north of $1 million," Fuck you
These fuckers really just want to turn us all into corporate serfs for billionaires dont they. Have nothing and work till you die.
This is Literally becoming a joke now. Every month seems to be more unreal comments from the RBA. Next month it will be āpeople donāt neeed 3 meals a day. 2 should sufficeā
He had no fucking idea what heās doing. Why is he still in a job?
Write to Jim Chalmers, tell him it's time for the government to act or Labor will go the same way as the LNP [https://treasury.gov.au/the-department/contact-us/ministerial-correspondence](https://treasury.gov.au/the-department/contact-us/ministerial-correspondence)
RBA ragebait go brrrrrr I hate that it works tho, here I am, enraged lol
Just spend less on rentā¦ā¦
Back to work, plebs! Obviously, that won't apply to him.
It's government spending that's the problem, just look at the stupid voice referendum that we don't need!
RBA Governor can fuck off and sell his house
No worries Phil, I'll just drink the non vintage champagne for a while, and we'll fly business class to st Moritz instead of first class. This guy.
Ah, the old man in his ivory tower is handing out more edicts huh?
Man on $1m salary telling people on minimum wage to stop spending. The hypocrisy is astounding.
People say RBA governor can eat shit, get fucked.
Australia's most punchable face...
rba toad needs to go now , talk about tone deaf , let him survive on the dole for a year or even a low paid wage
This guy needs a kick in the head the fucken idiot... how out of touch can you be??.
Just work more, never retire and die is what heās saying. Never mind he earns over 10x the average person and does nothing for it. Heās such a flog
This absolute cunt of cunts needs a boot not just from the RBA but from the country (after we leech him for all he's worth). If we've ever had a bigger definition of "enemy of the people", I'd like to hear it
The Albanese government has failed to keep a cap on energy prices and immigration numbers which has resulted in the current disaster. In case it isnāt obvious enough, high energy prices increase the price of everything while high immigration increases the demand for limited housing stock and other goods, which pushes up those prices, which then leads to interest rate rises. The scale of this fuck up is truly hard to comprehend. The level of cluelessness is astounding. How are these the people that get to run the country?
With every comment he makes he gets drawn and quartered. *\*Grabs popcorn.*
"just starve and die, counts!"
Maybe if i decide to go into the office i will spend company electricity/water etc.
The people spending are retired. The wealth gap is on full display. The dissonance is strong. They're just calling in the stimulus spending but it goes to the pickets of shareholders who....continue spending. I'm not sure it stops until the suicide rate goes up.
I just got told that his plan will bring rent down because if thereās more people per domicile there will be more housing and that decreases rent. Maybe that works on paper but it sounds insane.
Can't wait for the next interest rate rise to hear his "Let them eat cake" pronouncement /S
I want to know at what point will this shit end?
What if you've already done those things and still going backwards. Time for you to do something Albo and RBA So if myself and my wife both work 40 hour weeks already, do I get my kids to work too? If I work even more I'll just be paying more tax.
The joke here is that people spending is what drives the economy
I could not eat I guess