Australia has a two-in-three chance of avoiding a 2020 recession

[icyfroth]

Kevin Rudd reckons Australia has a two-in-three chance of avoiding a 2020 recession — if the government would just listen to him

There's plenty going on in the world right now to make investors, markets and even former Australian Prime Minister Kevin Rudd nervous. 

Interest rates in Australia and abroad are at record lows, the US-China trade war is escalating, a hard Brexit is fast-approaching, and the prospect of war with Iran could capsize the world's oil supply. Italy is still at risk of defaulting while the UK and Germany are proabably already in serious economic trouble.

And that's just the tip of the recessionary iceberg, the world is sailing towards, Rudd warns.

"Global economic storm clouds are gathering. The US is already 10 years into its current growth cycle – the longest in modern economic history. Markets are anticipating a correction," he wrote in an opinion piece published in the Australian Financial Review (AFR) on Thursday.

Jack Derwin

1 day ago

Read more here

I'm inclined to believe him.

Aren't you?

[lyndal1838]

Not much good listening to Rudd......his solution was to throw money at the problem last time.....the surplus that had been built up by the Liberals.

There is very little left now.

[martinw-48]

Yes, how stupid was that because it completely averted Australia suffering from the worst part of it.
Much better to let the rich keep all the money and watch the economy go down the toilet

[tezza2844]

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@icyfroth wrote:

Kevin Rudd reckons Australia has a two-in-three chance of avoiding a 2020 recession — if the government would just listen to him

There's plenty going on in the world right now to make investors, markets and even former Australian Prime Minister Kevin Rudd nervous. 

Interest rates in Australia and abroad are at record lows, the US-China trade war is escalating, a hard Brexit is fast-approaching, and the prospect of war with Iran could capsize the world's oil supply. Italy is still at risk of defaulting while the UK and Germany are proabably already in serious economic trouble.

And that's just the tip of the recessionary iceberg, the world is sailing towards, Rudd warns.

"Global economic storm clouds are gathering. The US is already 10 years into its current growth cycle – the longest in modern economic history. Markets are anticipating a correction," he wrote in an opinion piece published in the Australian Financial Review (AFR) on Thursday.

Jack Derwin

1 day ago

Read more here

I'm inclined to believe him.

Aren't you?

---

This is not like you at all.....supporting a labor view of the econmy..Just because Toxic Tony is no longer in charge

[tezza2844]

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@lyndal1838 wrote:

Not much good listening to Rudd......his solution was to throw money at the problem last time.....the surplus that had been built up by the Liberals.

There is very little left now.

"his solution was to throw money at the problem last time."  Well it worked and kept Australia out of the recession that plagued the rest of world who decided to sit on their bums and hoped it wouldn't effect them.

If you really believe that the Australian economy is in "good shape" then you have fallen for the greatest con  job Australia has ever been dealt.

.

https://www.abc.net.au/7.30/joe-hockey-says-rates-cut-reveals-struggling/4869442

And this is from one of the greatest Liberal treasurers of all time. Addo nto that wages stagnation etc etc

[go-tazz]

If you keep reducing the money that's available for the lower income earner and increase it for the "richer"

person then the economy is going to suffer (as the low income earner spend all their money each week just

to survive in a lot of cases and the "rich" just bank it).

Housing rentals have also gone to a height where it's no longer affordable for the lower income earner and they

struggle to find a house to rent (recently the lowest rental place here for a 3 bedroom home was $325 per week

and up to $550 but it has come down slightly since and it's cheaper for 1 and 2 bedroom units/houses).

Spending nearly half of your wages on rent means they struggle each week and have no excess money to

spend into the economy (the property owner either banks the rent or pays it to the bank).

[icyfroth]

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@tezza2844 wrote:

---

@icyfroth wrote:

Kevin Rudd reckons Australia has a two-in-three chance of avoiding a 2020 recession — if the government would just listen to him

There's plenty going on in the world right now to make investors, markets and even former Australian Prime Minister Kevin Rudd nervous. 

Interest rates in Australia and abroad are at record lows, the US-China trade war is escalating, a hard Brexit is fast-approaching, and the prospect of war with Iran could capsize the world's oil supply. Italy is still at risk of defaulting while the UK and Germany are proabably already in serious economic trouble.

And that's just the tip of the recessionary iceberg, the world is sailing towards, Rudd warns.

"Global economic storm clouds are gathering. The US is already 10 years into its current growth cycle – the longest in modern economic history. Markets are anticipating a correction," he wrote in an opinion piece published in the Australian Financial Review (AFR) on Thursday.

Jack Derwin

1 day ago

Read more here

I'm inclined to believe him.

Aren't you?

---

This is not like you at all.....supporting a labor view of the econmy..Just because Toxic Tony is no longer in charge

---

I support whoever has the welfare of Australians and good governance of Australia at heart - be they Liberal, Labor, or whatever party they choose to ally themselves with.

[springyzone]

It's interesting as I remember how our solution back when much of the world suffered a recession was to spend. If I recall rightly, it was at that time a huge school building project started. Let me say that it was introduced with no planning, no discussion and i don't know that it was perfectly organised but it did seem to work.

All I know for sure is we didn't suffer anything like the recession they did in places such as USA.

Not to say we were untouched (people's super accounts suffered) but we were better off than a lot of other countries.

I'm inclined to agree with Rudd that there could be tougher times ahead. Probably for a bit of a strange reason but my son in law is a brickie with his own business but subcontracts a lot for a house building company. A large house building company that most people here would recognise if I named it.

And for the first time in 7 years, he has not much work on for next week. Only one day. They have told him they don't have many new contracts for homes and he may need to take work over in the western suburbs (he is in the very outer south east).

He said he may have to start ringing around other companies to see if there is work & this is the worst it has been for ages. A couple of years ago, he was knocking back work as he couldn't keep up with demand. I remember a neighbour (in the building industry) coming over to ask if he could fit in some jobs as they were desperate. But a lot of bricklayers are finding it harder at the moment.

My son in law has one or two apprentices who have to be paid as usual this week, even though there is minimal work. That can go on for a little while, but I imagine long term, it would mean he would have to lay them off and so we would have a trickle down effect with more out of work.