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Hypocricy


Yenn
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I keep hearing the government saying the banks should pass on the reduced cash rates in full. They seem to forget that they have a deeming rate which is what they say pensioners earn with any money they have.

 

The deeming rate is 1.75%, while the cash rate is 0.75%. Who should be passing on the reduced rates?

 

Can they really expect the banks to do what they will not do themselves?

 

 

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  • 4 weeks later...

Asked what the government was doing to help the farmers in the drought, the PM explained that as they were in dire straights financially, with no income and no idea of when the drought would end, they would be encouraged to take out  a loan, interest free for a couple of years, then interest only, then repay.

 

What a great help. Lend money to someone who has a diminishing chance of repaying it. The PM must be mad, he is going to lose all that money.

 

But then again maybe his agenda is to foreclose on all those lovely dairy farms and his rich entrerprenurial mates can buy them at give away prices, or better still he can let China buy them.

 

The government approved the sale of an Australian baby food manufacturer to China recently. The Aussie company had  been stopped from exporting to China, by the Chinese government. The share price plummeted and China bought its way in. Of course there will be no impediments to a Chinese owned company exporting to China.

 

 

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The Reserve Bank have made it quite clear that lower Interest rates can do little more and other actions from the government are needed. They have hung everything on having a no budget deficit occasion despite it being the very circumstances you would  choose to  NOT do  it. Ie the economy needs stimulating. People KNOW things are not alright and are paying off debt rather than spending big. Nev

 

 

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I don't think I'd trust them to successfully run a chook raffle.

 

But to be fair, let's look at both sides of the coin.

 

On the negative side, what they don't have:

 

         a surplus

 

         a healthy economy

 

         any idea what to do

 

On the positive side, what they do have going for them:

 

 

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Actual Gov't DEBT at the highest ever. They altered the Legislation which capped it and sailed through about 5 years ago.

 

  Re the current LOW interest rates...IF people borrow at near zero interest to do a deal  when the interest goes (inevitably) to a more natural level they will ALL have to sell their assetts if their equity isn't a high % of the value which will DROP sharply to and they can still afford to pay it off and cobv er the new interest costs. The new value will end up well below the purchase price, so the deal is not a good one.. Most see Real Estate as a "safe as Houses" investment but like all things  the Market determines the PRICE and during the "Depression" everything gets very cheap. and Jobs get far between. Of Course the deeming rate is pure Highway robbery of pensioners. Unconscionable if they had one. Why not use the ACTUAL income obtained. That wouldn't be too difficult.. Nev

 

 

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They do use the actual income obtained. The deeming is for money that is not invested, but just sitting idle in a bank. Most likely put away to cover unforeseen expenses. The ank interest will not equal the deeming rate.

 

 

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The deeming is for money that is not invested, but just sitting idle in a bank.

 

 

 

 

No, that's not correct. The Govt classes your assets as "financial" or "non financial". Your financial assets are used to calculate the deeming rate. "Non financial" assets are not counted in any deeming calculations.

 

So, it matters not whether your financial assets/money is in an interest-earning investment account, sitting in your safe in the form of cash, in the form of loans to others, or in gold or other bullion - it is "deemed" to be earning "income" at the deeming rate.

 

So you can have $150,000 sitting in an interest bearing deposit at 2% - but the deeming calculations says it's deemed to be earning 1% on the first $51,800 ($86,200 for couples) - and deemed to be earning 3%, on any amount above those figures.

 

This is BS of course, you're struggling to get 3% interest in any interest-bearing account today.

 

The whole scheme is designed to reduce the amount of pension paid, and it sometimes makes retired people invest their money in riskier investments, to try and get a better return.

 

Here is the DVA Factsheet, the figures and calculations and rules, are the same for Centrelink pensions.

 

https://www.dva.gov.au/factsheet-is89-deeming-and-financial-assets

 

 

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I dont keep cash in the bank, interest is so low we are losing with the way costs go up and interest does not keep up, i take out cash 4 times a year and keep in safe ,only keep small amounts to pay usual bills in bank account, i get better deal on stuff with cash, when my wife retires we will take her super out and use it, as self funded retirees with no debt we are penalised if we have to much super,i was asked by the thae bank once why i take lump sums out , i told them its none of your business its MY money and can do what i like with it

 

 

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  • 2 weeks later...

gareth, how about buying a little bit of bullion and burying it somewhere? The value will grow faster than inflation I reckon.

 

Just don't die without telling a trusted younger family member. A neighbor had this calamity happen  in his family and they dug up all of grannie's backyard to no avail.

 

 

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Just don't die without telling a trusted younger family member. A neighbor had this calamity happen  in his family and they dug up all of grannie's backyard to no avail.

 

Reminds me of the story of the orange orchardist of Italian heritage who was banged up for alleged Mafiosa connections. He knew that his conversations with family were being monitored during visits with family. During one of them, he leant over to his son and said, "Flavio, you remember that big bank heist? I buried the loot in under a tree in the orchard." The next day a team from law enforcement arrived at the orchard with a warrant and shovels. For a week they dug around all the trees, looking for the horde, but found nothing.

 

Later that year, after Flavio had completed the orange harvest, he went to visit his dad in gaol.

 

"How was the harvest," asked the old man.

 

"Dad, it was the best I've ever seen."

 

"Good. Good. The roots of those trees needed aerating and I was worried about how I would be able to get the ground around those trees dug up."

 

 

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You have to be either very astute or lucky to make a fortune with bullion. I bought a small amount years ago at $800 per oz, kept it for several years and sold it for $1200.

 

OK that was 50% increase, but it was at a time when inflation was running high, so really I didn't make much.

 

Now of course the price is way up and inflation is ay down.

 

 

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I don't like the idea of money in cash in your safe. Thugs just bash you or the wife till you open it for them.

 

The safest thing is if nobody knows about it.  If it is known, you need to keep some cash there just in case the thugs come.

 

My daughter bought  house in Brisbane many years ago, and a few years later they were changing the carpet and there was about 2 hundred dollars under the old carpet. I wonder if a previous owner had his nest egg and died without telling. 

 

 

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They have to get in to the property first ,electric gates and high fences security on all doors and windows also not in a high crime area and if you can find the safe and then open it your welcome to it (our house is alarmed and can turn of zones)ie bedroom and bathroom we also have cameras in certain area's ie front and back sides of house so worry level is zero

 

 

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Some builders were carrying out property extensions at a recently purchased property in South Perth, W.A., about 20 years ago, and they had to excavate for the foundations for the extension.

 

When they dug down in the old garage area, they found a large cache of silver bullion bars. They reported the find to the Police - and then came the arguments about who it belonged to. The Police homed in on the previous owners family.

 

The son of the previous owner (who was deceased, thus resulting in the sale of the property), produced Perth Mint receipts for a large number of silver ingots that had been purchased by his father - but they had never been able to find the whereabouts of those silver ingots. The son reported that his father was a bit of a hoarder and secretive.

 

The Police decided the son had the necessary proof of ownership of the ingots, so they were given to him. I seem to recall the value of the ingots was about $30,000.

 

I'm not sure if the son gave the new property owner, or the builders, anything for finding the ingots, and being honest about their find, by reporting it to the Police.

 

Interestingly, a wealthy property owner in Albany W.A., discovered a cache of around 300 old sovereigns, dating from 1817 to the early 1900's. Because the hoard was so old, there's no requirement for the owner to hand them over to authorities.

 

As the property owner, he's entitled to keep them under W.A. law - which he did, causing great angst amongst local historians. We have no "ancient hoard" laws, unlike Britain.

 

But if you find Shipwreck treasure in W.A., even if it's buried on land, you have to hand it in.

 

https://www.abc.net.au/news/2011-05-27/buried-treasure-in-albany-may-be-lost-forever/2734524

 

 

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Lol no dogs but my wife and i are away frequently and i can use my smart phone to see what is happening at my home from any where in the world s ome hiuses in the estate were burgled a few years ago. Main reason for gates and security is to keep JW and the likes out and our grandkids safe inside the property you can never make a house completely safe from intruders but i am 95%  safe from opportunist  thieves 

 

 

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