The recession Australia deserves to have

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Australia’s housing bubble is on the verge of going pop. The housing bubble is based on a few factors, namely an immigration Ponzi scheme, the market distortion created by the Reserve Bank manipulating interest rates, and the demise of Australia’s manufacturing economy which has resulted in a scramble for wealth generation via asset inflation.

Australia has staved off an official recession for almost 30 years by sleight of hand manipulation of the economy and official measuring indicators such as GDP. But with so many jobs now based on the housing and construction sector, a bursting of the bubble would see such an impact on the economy that it is hard to determine how this would not result in a recession.

This chart that was published last week in The Australian is illustrative of just how big the problem is and for how long the market reckoning has been put off.

What is amazing about this chart is that economists such as Alan Kohler truly have no idea why the problem has become so exacerbated.

“It seems counter intuitive, to say the least, that one of the planet’s largest and most sparsely populated land masses should have a shortage of land and houses, but that’s what has happened.”

The rise in the Australian house price index directly correlates with the introduction of a policy of multiculturalism through mass immigration. This has always been passed off economically as a net gain for Australia. After all, more people means more GDP! What is never revealed is that welfare spending is counted as GDP. In other words, the government has been calculating it as a net benefit to take money from the populace in the form of tax, give it to foreigners who have migrated to the country, and count their spending as an increase to the GDP. This is why we haven’t had an “official” recession for almost 30 years. As I said, economic sleight of hand.

The real economic effect of such a high level of migration has been to push down wages for the lower and middle class while creating an enormous burden on existing infrastructure such as roads, public transport, hospitals, and schools.

And then there’s the housing market.

The government can’t halt immigration because the entire economy relies on 250,000 permanent arrivals every year so as to be able to keep the official GDP figures looking rosy. The housing market going boom will be bad enough, but the real long term effect of this 30 year policy is the cultural and social destruction of our nation and of our heritage. We’ve given away our country to foreigners so politicians can continue to claim that Australia has not had a recession for almost 30 years. Never has so much been given away to protect so few jobs. So much for serving the electorate that voted for them.

27 years ago Australia suffered the recession that it “had to have”. But looming around the corner is the mother of all recessions, and this one we deserve to have.

This article was originally published at https://pushingrubberdownhill.com/, where Adam Piggott publishes regularly and brilliantly. You can purchase Adam’s books here.

  • clemilf

    Enjoying the decline!!!

  • Maryanne

    GDP is useless as any sort of indicator of economic health. As you wrote, it’s just a measure of economic activity. So divorces, assaults, burglaries, smashed windows, stolen cars, court hearings and goal sentences are all great for GDP! Keep it in mind when you next hear a politician getting excited about our GDP. Morons the lot of them.

  • entropy

    Not to mention the RBA artificially suppressing interest rates and keeping the cash rate at a record low 1.5% for over 2 years now. Not only protecting those who are overextended in property but screwing those who are trying to save.

    Why isn’t RBA corruption being investigated by the Royal Commission?

    • Because the RBA communists rule the nation.

      Hell, it’s lilely JFK was killed for talking about ending the fed.

      Central banking is evil.

      • clemilf

        Central banking is a subroutine of the conventional banking system where “C R E D I T C R E A T E S M O N E Y”. Yes I am shouting. Even getting rid of the central banks, the existing bank licence allows infinite money to be created A S A
        L O A N. This is OK with discipline but the Ozzie big four have created an almighty ponzi based on a depreciating liability- and studiously ignore lending that generates economic wealth.

    • Bucky Redux

      RBA dudes are front holes.

  • clemilf

    I am enjoying the decline. The only lever of RBA is kinda broken- if they touch it we will accelerate over the cliff!

  • Great minds think alike, video on this exact topic to be published on the weekend.

    Central banking, mass-immigration and urban growth boundaries are to blame.

    In other words, it’s the fault of government.

  • fimbulwinter

    Theres no Ponzi, muh real estate doubles every 5 years because market forces. The reserve bank is keeping interest rates low and we need more Chinese so we don’t get sharia law. GDP good! We lived through the recession we had to have so we know everything about the economy.

    Thanks boomers!

    • Bucky Redux

      Piss off lefty troll ! Boomers changed your nappies…….
      sarc/doh

  • fimbulwinter

    Haha!

  • Bikinis not Burkas

    No recession with Sharia Finance only inflation!

  • Bucky Redux

    Melbourne/Sydney/Brisbane will eventually implode and sink into their own dystopian black holes and become multikulti shitholes populated only by Chinese, Indians and low IQ Sand People.
    Whitey will be exterminated.
    Everything is going to plan.

    • fimbulwinter

      Piss off lefty troll

      • Bucky Redux

        Is that you, Slackbastard ? Or is it “Jamie BlankBrain”
        sarc/

  • The g Factor

    Actually when you take into account that our GDP only grew by 2.4% in the years 2016 and 2017, (not much more than a third of countries like Vietnam, China and India), that our foreign debt reached a trillion dollars back in 2015, that billions of dollars flow overseas in interest and profits as well as money sent back home by immigrants, we are probably going backwards already. One area of growth however is our prisons as the imprisonment rate is about three and a half times that of the mid-1970s – one of the successes of our multicultural society.

    • thegentlemantroll

      Hey it’s not all bad, at least Malcolm Turnbull and Kevin Rudd made a lot of money

      • Daniel Watts

        And pensioned already.

  • Daniel Watts

    Instead of timely adjustment resets this cycle has been propped up for far too long which makes a recession inevitable and a depression now possible.

    Just saying the name Kohler makes me spit- yet all the talking economic heads will claim, ‘ We never saw it coming.’

  • I say bring it on. Whichever way it happens, Aussies are screwed. The traitors that pretend they represent us have made sure of that.

    • Bucky Redux

      Aussies are used to bending over……

  • Smashing piece. We’re on the precipice. Bring it on and let slip the dogs of war.