Australia Inflates!!

#inflation #moneysupply #moneysupply #economy #australia #gold #bitcoin

The Australian May 25 M3 growth is in, showing almost 6% growth in 12 months or AUD 180bn. The annoying thing is that the calculation and release of the M3 data always lags by about 6 weeks.

Is the figure important?

Yes. It is an indicator of “new fiat money” in the economy. An increase in fiat money is “inflation” not the concocted CPI (Consumer Price Index). At a basic level your AUD purchasing power has dropped by 6% in 12 months. Growth in incomes over the same time has pushed many into new tax brackets meaning there is even less net income available.

The concerning factor is the reporting month was when Australia resoundingly returned a Labor Government, preceded by a deficit Budget for FY 25/26 and a number of years following. The budgetary impact has not even flowed through into the economy but M3 is showing an uptick.

Many may not agree, but the RBA (Reserve Bank of Australia) recent decision to hold interest rates was sensible and appropriate - despite “manipulated” figures that supported an argument for interest rate reductions.

The Government can increase money supply BUT so can others.

- Banks can increase lending

- Investment in derivative products (1% on the table for a 100% stake)

are two examples.

Using #gold as a base currency indicates around 40% inflation in the last year. So if you had AUD 100 in the bank a year ago you may now show a balance of AUD 103 after taxes and charges. Whereas AUD 100 of physical #gold is going to show AUD 140 or thereabouts.

If you held BTC ( #bitcoin ) for about a year or less you should be showing a 60% increase.

What are the responsible options - focus on investing as much as you can into #gold or #bitcoin and protect your family’s future.

Alternatively, spend like crazy and let the #government look after you and any problems.

I know which path I will take.