Australia has The Most Inflated Housing Bubble on Earth and it is Crashing !!

There's a recession developing in many places. Australia is not immune. House prices dropping are only an adaptation to the collapsing economy. The rivalry between China and the US was always going to cough up slime. Wages have barely risen while house prices are up over 300% and in many places over 400%. With house prices up over 400% in many cities, it's odd this musical chairs fun came to an end. Australia has today the most inflated housing prices on the planet, and Worse still, the Australian economy is more depending on housing than any other on earth. It means If mortgages now fail, the entire Australian economy is going down the drain. In Western Australia, Industrial areas are starting to look like Detroit. The economic collapse has begun. Welcome to The Atlantis Report. Australia was always a one-trick economy. From the mining boom to the housing boom. This is about that over-reliance on one industry at any given time. Australia's population is the size of Texas. There is more than enough space to add to business, infrastructure, and economy. Monopolization of big corporations is the problem. Australia has no industries, selling farms, utilities, moving jobs offshores, selling "the earth" with no value-added components. Yet Australia is in debt, the highest in the west. They are spending beyond their earning capacity to pay. Big Government, spending big Dollars, most unproductive lots. If low or zero interest and devaluing the dollar is the magic bullet, well, go ahead make it zero. Countries shouldn't put their economic well being on immigration and housing as their "hail Mary." Australia is a "Rolls Royce country," but they can't service and keep it running. The ones having the authority of the wheel didn't and don't get it right. The 2000 Sydney Olympics marked a massive change in Australia. It's like it sold its soul to globalism. Australia's population is small. The reason there's been a 27-year party of no recessions is that every time the housing market is set to correct, the Government of the day jemmies open the borders for more mass migration - and always ensures we take the rich 3rd world. So, for example, university education is the back door visa factory for the children of wealthy 3rd world elites. If you own a concrete factory in Bangladesh or a weapons dealership in Indonesia, you can send little Mohammed to Sydney University to do an accountancy degree. Then you and your wife and your 17 other children can migrate in on family reunion visas and go shopping for expensive real estate in Sydney. Four hundred thousand visas granted per year for "education." Each one earns the University several hundred thousand dollars. Developers have run Australia for far too long. It has been a never-ending Ponzi scheme of bringing in the foreigners and build them housing, etc. So much so they forgot everything else, new dams,electricity, and transport to handle the population increase. And when they don't forget like Sydney light rail, its a bloody disaster with shonky contractors and massive delays, one thing they will do though in disgruntled areas is building new stadiums. The sheep are happy if they have a stadium and a six-pack. Australia’s property bubble shows the lessons of the 2008 crash haven’t been learned. The Burst is coming, and it is not a matter of if but of when. The end of Australia's property boom time is over and is going to be over for quite some time. According to experts, we should be expecting a 40 to 45 percent collapse from the peaks. Australian banks are tied by 1.7 trillion in mortgages, and that's about 65 percent of their total lending. That's higher on any other country in the western world by a long way. There is no other economy more exposed to the housing bubble than the Australian economy. Australia today seems in the same situation as to where the US was in 2006 and 2007. Australia got a debt bomb and a debt crisis, and at some point, they are going to explode. Australia’s household debt to GDP was 120.5 percent as of September last year, according to the Bank for International Settlements, one of the highest in the world. In 2007, Ireland was sitting at around 100 percent. Harry Dent Warns Australia: You Have the biggest Housing Bubble in History second only to China. Classic debt-driven asset boom where you restrict land release, flood the economy with useless people whose only purpose is to inflate the housing market, and then you make debt very cheap and easy to get - the trap. It will end with a Hymen Minsky ' crackup boom'. A crackup boom is the crash of the credit and monetary system due to continual credit expansion and price increases that cannot be sustained long-term. What makes this remarkable is first, the time duration of the bubble's creation, secondly, its size, and finally, the use of debt and bubble as a surrogate for real economic growth. I think most Australians are going to find out their property-related wealth is a transitory phenomenon. This real estate bubble is the greatest bubble in modern history, And Australia is number two only to China in the extent of this bubble. So there is no way real estate is going to go up much farther. Definitely, we are in a housing bubble. Income is low; Housing prices are too high. Fewer jobs and interest rates are going up. People already have considerable debt. There have been too many Scheisster elites and elite institutions, both private and Government, propping up the housing market. But, one swift kick of the front door, in terms of interest rates going up and the whole rotten edifice with collapse into a heap of rubble. What is really happening in real estate booms and busts? Bank loans create money, and the repayment of debt to banks destroys money. In the real estate boom, new money pours into the economy from mortgage lending, fuelling a boom in the real economy, which feeds back into the real estate boom. The Japanese real estate boom of the 1980s was so excessive the people even commented on the “excess money,” and everyone enjoyed spending that excess money in the economy. In the real estate bust, debt repayments to banks destroy money and push the economy towards debt deflation (a shrinking money supply). Japan has been like this for thirty years as they pay back the debts from their 1980s excesses, it’s called a balance sheet recession. Bank loans effectively take future spending and bring it in today. Jam today, penury tomorrow. Using future spending power to inflate asset prices today is a mistake that comes from thinking inflating asset prices creates real wealth. GDP measures real wealth creation. Prices rise because the Banks keep flooding the market with more debt. Where do they get that debt from? The Government, of course. The Australian government actions this debt [to the banks] for a fee of 2%. So the debt you are borrowing from the bank already has tax added to it. Once this debt is in the hands of the banks, they can multiply it by a factor of 10 simply by sleight of hand. Fractional reserve banking is theft on a grand scale. The Government does not want you to own your home. They want you working until you die so you won't draw on the state pension. It's an incredible bubble that's distorted the whole economy. So many small businesses are going under trying to pay rent — so many people struggling to pay bills. Everyone, just everyone necks deep in debt operating on the same moronic 'one plus one will always equal two' assumption as they double down on property investments. We had a politician sure to win this year crash and burn because he suggested doing something about housing affordability. Not sure where he is now. A shallow grave in a forest somewhere. The only way banks make money is to loan it out. The best way to increase that is to create a property boom (Since there is no capital investment in manufacturing anymore). Drive pricing through the roof to increase loan amounts and start a culture of 'property investment for everyone' to increase the quantity. The stock markets did this in the '30s and 2000. The energy companies and telcos (nearly all foreign-owned) are trying to gouge their share of the remainder of disposable and discretionary income. The fly in the ointment is static wage growth and the associated reduction in spending and confidence at the same time business is complaining about high wages and trying to reduce them. Unless you're an exporter that's business suicide. Recessions and depressions are 100% about confidence or lack thereof. It's about time to shear the sheep again. The Chinese money was stopped from flowing into Australian real estate two years ago when they changed the rules to prevent foreign ownership of houses. They can only buy new constructions off the plan to 'stimulate housing construction,' and if they leave them vacant, they are slugged with a colossal vacancy tax. That plus China tightened capital controls. Chinese money has been absent for two years now. "Investing" in a home beyond something to live in is a fool's game. Investing is not defined by how much you can sell something for. The last to buy in a bubble gets stuck with the highest price. The value of a house is a function of material cost, time-wise distance to work, and services. Build modestly in an area that meets your needs, then pay it off. Within 30 years, that will stabilize an economy. Australia and Canada are both full of politicians that essentially let the Chinese take over their countries. Absolutely unforgivable. How the hell are these two relatively low population nations supposed to breed and grow when their own children can't buy homes? The short-sightedness is off the charts. Importing all these immigrants happened under BOTH flavors of Government. THIS IS WHAT HAPPENS WITH UNREGULATED GLOBAL CAPITALISM. You import cheap labor, and they breed like rabbits And you let rich foreigners buy up your prime property, and they also take over. Meanwhile, the Chinese criminals bring in heroin to literally kill off a good percentage of the native reproductive age youth. The 2000 Sydney Olympics marked a considerable change in Australia. It's like it sold its soul to globalism. The other problem is the total lack of quality of all new Aussie buildings. The planning is appalling, and the workmanship horrible. This is especially true with high rise apartment buildings. There will be an expensive wake up with many buyers. Australian building has a vast quality crisis. You cannot believe how cheap and poor all these new constructions are! These expensive apartments will fall apart in no time at all, and then they are not an asset anymore but a liability. The Australian "Dream"; A back-breaking load of debt for 30 years. But some will still dream. Thanks, central banksters. This was The Atlantis Report. Please Like. Share. And Subscribe. Thank you.










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