What a change from the gloom and doom of the six sick years of the union controlled Labor Party's Socialist waste and disgrace and shame.




7 Reasons for Optimism on the Australian Economy



We all love to be optimistic about our economy so here are 7 Reasons for Optimism on the Australian Economy

Key points
– The mostly gloomy debate around the Australian economy often gives the impression we are in a constant state of crisis.

– But economic growth is pretty good, the economy has rebalanced without the (“inevitable”) recession, the worst of the mining bust looks to be behind us, public infrastructure spending is ramping up, consumer and business confidence are around long term averages, share market profits have likely bottomed and Australia stacks up well on social considerations.

– These are all reasons to be reasonably optimistic about the Australian economy and Australian assets.

Introduction
Ever since the mining boom ended several years ago it seems a sense of gloom has pervaded debate regarding Australia. There is constant talk of recession whether we don’t do something (like control the budget) or even if we do nothing (with reports titled “Australian Recession 2016 – Why it’s unavoidable and the quickest way to protect your wealth”). This sense of gloom makes me wonder whether it could be harming us – by dulling innovation, investment and a “can do” spirit. This note looks at seven reasons for optimism on Australia.

There is always something to worry about
To be sure Australia does have its problems. Unemployment at 5.7% and labour underutilisation at over 14% are too high. Housing is too expensive, the Sydney and Melbourne property markets are too hot, we are likely to see an oversupply of apartments and household debt levels are very high. The biggest boom in our history has ended, hitting investment and national income. Given this the $A is arguably still too high. Profits of listed companies fell around 7% over the last financial year. Wage growth and inflation are arguably too low for comfort. And we seem to be in perpetual political grid lock with a difficult Senate and no political ability to control the budget and undertake hard economic reforms.

But these worries are well known and have been done to death. Of course there is always something to worry about, but the endless whinging we hear in Australia leaves the impression we are in a constant state of crisis & distracts from the good news.

Seven reasons for optimism on Australia

There are in fact several reasons for optimism on Australia.

First, economic growth is pretty good with the economy expanding 3.1% over the year to the March quarter and looking similar for the June quarter. This is in line with Australia’s long term average. It’s also way above most other advanced countries. Latest annual GDP growth rates are 1.2% in the US, 1.6% in the Eurozone and 0.6% in Japan. Of course I could add that the economy hasn’t had a recession in over 25 years, but that one gets a bit overdone and owes a little bit to luck with statistics!


Second, the economy has rebalanced. The slump in mining investment and national income due to the collapse in our export prices has been offset by a surge in housing construction, solid consumer spending, a pick-up in services exports and a surge in resource export volumes.The lower $A is helping – surging service exports


Source: ABS, AMP Capital
As a result of all this, post mining boom weakness in WA & NT is being offset by strength in NSW and Victoria as the much talked about two speed economy has just reversed.State of the states, annual % change the latest


Source: ABS, CoreLogic, AMP Capital
The bottom line is that the recession many said was inevitable as a result of the mining bust hasn’t happened.

Third, the worst of the slump in commodity prices and mining investment looks to be behind us. After sharp falls from their highs around the turn of the decade global prices for iron ore, metals and energy have stabilised as greater balance has started to return to commodity markets and the $US has stopped surging higher. While a new commodity price boom is a long way away the stabilisation should help our terms of trade and national income.Furthermore, after falling for three years from a peak of 7% of GDP, mining investment intentions indicate that mining investment will have fallen back to around its long term norm of around 1-2% of GDP by mid next year. Reflecting the slump in mining investment, engineering construction has now fallen back to near its long term trend indicating that the wind down in the mining investment boom is almost complete and that it will be less of a drag on growth next year. This is important because the slump in mining investment has been knocking 0.5 to 1 percentage points of annual GDP growth over the last three years.


Read the exhilarating rest here

[url]http://bmkfinancialservices.com.au/7-reasons-for

DENIAL MODE is all the go for the Lefties. After all what else have they got when their HERO is an abysmal failure who could not get within a bull's roar of winning the election ?

But the realist Libs know that things is going to get tougher as the hostile anti-Australian unions force industries to go bankrupt or leave Australia.


No surprise the lefties feel a bit lost and hopeless with this nasty looking piece of work as their HERO




We just got a glimpse of Australia’s future — and it is not good
Jason Murphy news.com.auJUNE 16, 20187:19PM

WE’VE just been given a glimpse into Australia’s future — and it’s not looking good. This is why everyday Aussies are about to get screwed.

VIDEO: The truth about the cost of living in Australia

TO SEE where Australia is heading, look across the Pacific Ocean.

Out past Hamilton Island, past Fiji, over the equator and all the way to the USA.

Australia’s economic future is America’s economic present. Where they are now we are likely to be in a few years. What America shows us about the future should concern all of us.

America is throwing the brakes on its economy by raising interest rates, even though wages growth is still below normal levels.

America is well ahead of us. In Australia, interest rates are at record lows, and have been since 2016. Rates were cut to emergency levels to try to light a spark under an economy that was struggling badly. In America, interest rates hit record lows way earlier. They bottomed out in 2009 and then started rising in 2015.

US interest rates are set by the US central bank, and it has a new man in charge. When US President Donald Trump was elected, he sacked the old chief, Janet Yellen, and installed his guy, Jerome Powell.

Mr Powell has cranked up the pace of rate rises. There have been two this year and two more are expected. Interest rates are expected to soon be back to normal levels.

Interest rates should go back to normal when the economy goes back to normal. In America, most things are back to normal. Inflation is rising, unemployment is low, growth is good. But wages? Wages still don’t look right.

As this next graph shows, in the past, wages growth topped 5 per cent or 4 per cent a year in the good times. But now, in America, wages growth is just over 3 per cent, and far worse for part-time workers.


Read the full story of how the vile destructive unions have wrecked Australia here

https://www.news.com.au/finance/economy/australian-economy/we-just-got-a-glimpse...

All the accumulated velocity of a falling safe .... and all downhill... that's the easy run .....

See the old rtard Polly Waffle is deep in Denial Mode which is the sanctuary the Lefties flee to when things look good for the Libs.

The old rtard Polly Waffle must be suffering from attention deficit syndrome after being deprived of his attention seeking sanctuary all day!!!

Stupid union controlled Socialist Labor now has sag grapes to eat as they contemplate losing the election.

Patriotic Pauline really pulled the rug out from under lying Bulldust Billy!!!




Labor unlikely to support stage two of $143bn tax package. Opposition backs initial tax cuts for low income earners, but likely not later stages aimed at higher earners
Katharine Murphy Political editor Mon 18 Jun 2018 18.29 AEST Last modified on Mon 18 Jun 2018 19.22 AEST


Chris Bowen has signalled shadow cabinet will likely vote to back tax cuts for low income earners but not stage two or three of the budget package. Photograph: Lukas Coch/AAP

Labor has signalled it is unlikely to support stage two of the Turnbull government income tax cuts ahead of definitive deliberation by the shadow cabinet on the $143bn budget package on Monday evening.

As the treasurer conceded that the Australian Tax Office could allow some of the tax cuts to be delivered retrospectively in the event of a parliamentary logjam on the package, the shadow treasurer, Chris Bowen, gave a broad hint that stage two of the plan was unlikely to win Labor’s backing.

The income tax cut package is the focal point of the final parliamentary sitting fortnight before the winter break. The Turnbull government is locked in a game of parliamentary brinkmanship – insisting that the Senate must deal with the budget initiatives as a whole even though the last stage of the tax plan won’t take effect for two election cycles.



Despite declaring regularly that the bill should not be split, Morrison told reporters on Monday it was possible that the ATO could deliver the tax cuts where there was clear major party in-principle agreement but no final parliamentary resolution of the package.

Every Senate player, apart from the Greens, supports the first stage of the tax cut package which applies to low and middle income earners. Asked whether the tax cuts could start on 1 July in the event parliament hadn’t passed the necessary legislation this session, Morrison replied: “Yes, potentially.”



The government may yet be able to run the gauntlet and get the package passed courtesy of yes votes from the crossbench, with the two One Nation votes critical to any successful resolution for the Coalition.

Senate sources say Hanson is signalling privately that she is completely opposed to stage three of the package, which delivers a significant windfall to high income earners, but has an open mind on stage one and two of the package.

https://www.theguardian.com/australia-news/2018/jun/18/labor-unlikely-to-support...