Who Would’ve Thought? This Woman Did…
Wednesday, 12 May 2021
By Greg Canavan
[2 min read]
So the budget was ‘handed down’ last night.
Really though, it was just a confirmation of what had been leaked in the prior few weeks.
It sure is an election budget. Everyone gets a handout, it seems.
This year’s budget deficit (FY21) is now expected to come in at $161 billion. That’s better than the original expectation of $213.7 billion. I guess that’s good news?
The stronger than expected recovery from the government-mandated shutdowns is behind the improvement. Still, it’s not strong enough. The government is spending more of your kids’ money to ‘secure the recovery’.
The FY22 budget deficit is expected to come in over $100 billion.
Thank goodness for the government. What would we do without them?
Don’t get me wrong. I believe there is a role for government to play. That includes providing assistance to the most vulnerable groups in our society. But that shouldn’t come at such a huge cost to future generations.
Nor should it be the result of huge taxation of labour (incomes). If the government can’t get their house in order via minimal taxation, then we as a country have very big problems.
Which is exactly the case.
Good luck seeing the budget deficit drop as quickly as hoped. And good luck seeing it back in surplus for years to come.
There are no fiscal conservatives left in government anymore. The power of monetary debasement is too great to resist. Especially with an election around the corner.
What I find really hilarious is that government creates a problem, then rains cash on it to try and fix it. Just look at the housing market. It’s providing more and more support to those locked out of the housing market, when they (and the RBA) are the ones that closed the doors!
Who would’ve thought that the housing market would be back to boom times so soon after the pandemic shutdown?
Not many, that’s for sure.
In fact, I know of almost no one who predicted this market.
The one person who did though is our very own Catherine Cashmore, editor of Cycles, Trends & Forecasts. The evidence is all over the publication. But here’s just one example, taken from the May 2020 issue…12 months ago when the country was in lockdown…
‘Governments around the world are gearing up to spend trillions of dollars on infrastructure.
‘This is going to be the biggest global build-out of physical assets in human history.
‘Think roads, bridges, airports, seaports, energy facilities, 5G towers, schools, hospitals, rail and even hyperloops.
‘You name it; they’ve been planned…and funded.
‘This will fuel a global land price boom.
‘But it also requires an almost un-suppliable amount of building materials, skills, and new technology.
‘This is highly likely to further heighten global trade disputes.
‘All this fits in with everything we expect to see on the upswing of the Kondratieff wave (a subject we covered in November’s edition).
‘It will also kick us into a very strong second half of the 18-year cycle — set to peak in 2026.
‘Right now — 2020 — is the BEST time for you to take advantage of it in the property market.’
It certainly was.
With this in mind, I caught up with Catherine yesterday for a chat about property, the budget, and the key cycle knowledge that allowed her to see what everyone else missed. We also discussed the effect of cryptos on the property market.
I hope you enjoy. And if you want to follow what Catherine has to say in Cycles, Trends & Forecasts, click here.