Australian Banks Rated As Low Risk

Australian Banks and Economic Environment Positive

In a world analysis Australian banks have been found to pose a low degree of risk to the global financial system. According to Dr Robert Engle, the 2003 winner of the Nobel Prize in Economics and a professor of finance at Stern School of Business at New York University, the Australian banking system is robust and capitalized enough to endure another financial crisis.

Australian BanksHe said the economic environment was positive from an Australian perspective and that the liquidity measures that had been implemented were proving to be effective. The comments were made as part of Dr Engle’s presentation on systemic risk within the worldwide financial system, at a conference endorsed by the University of New South Wales.

Asian and U.S. Banks Pose Greater Risk than Australian Banks

His financial analysis of a number of banks from advanced economies demonstrated how some of the Asian banks put the financial system at risk. The analysis found Japanese banks to pose the greatest risk when it came to recapitalization costs, at $700 billion. The United States followed in second place with $600 billion. As far as systemic risk in Europe is concerned the UK came in first with $400 billion, followed by France with $350 billion. Dr Engle said that Australia had the potential to balance out the volatility posed by Asian financial systems but that France had to be watched carefully in Europe, as the center of stability in the Eurozone. The systemic risk [Read more...]

Recruiters Cost Cutting Strategies

Australian Job Market

According to a recent report published by News.com.au, the Australian job market, albeit relatively secure for the time being, does have its sore spots. There are numerous types of employment, which, due to the altering economic landscape and shifts caused by the global recession, globalization and the spread of outsourcing and offshoring, are simply not safe anymore. Read on to learn what those unsafe job sectors are, to figure out what recruiters are looking for, in these trying times and to find out about possible strategies employed by companies which are recruiting on a tight budget.

  • Travel. Travel has come to be regarded as a luxury, during a time when the economy seems to be on a perpetual downward trend. People continue to travel, as indicated by figures recently posted by the Australian Bureau of Statistics: arrivals to Australia increased by 1.2% on the year, for the fiscal year that ended on June 30, 2012. However, travel from Australia is not on an upward slope and an increasing number of tourists are choosing online booking services, in the search for better deals, instead of going to travel agencies. As such, travel agents might soon need to start looking for new jobs.
  • Retail. The retail sector is also under significant threat, in the face of increased online shopping activities, as reported by the Australian Bureau of Statistics. In 2008-2009, the proportion of Australians who had made at least one online purchase leveled up by 3%, from 61% the previous year, to up to almost two thirds (64%) of the population. Offline retail isn’t likely to disappear completely anytime soon, yet experts predict that several sectors of the industry will slowly migrate online, such as beauty products, fashion, electronics, etc..
  • Automotive. With the car manufacturing industry, potential job cuts are caused by increased international competition and the globalized marketplace, which has encouraged many to purchase non-locally produced cars. At the same time, local companies are increasingly looking into outsourcing the production of various parts.
  • Accounting & IT. Accountants and IT engineers are no longer being recruited on the home front, experts say. According to Greg Pankhurst of Balance Recruitment, companies understandably prefer to outsource such services to less developed countries, since the average yearly salary of a medium level Indian computer program is $6,000, as opposed to the $75,000 expected by an Australian in the same position. [Read more...]

The Doom of Wired Telecom

Advances in technology bring many changes to the business world, and certain industries that were once considered viable are now industries that should be avoided at all costs. One industry that is expected to shrink the most dramatically is the wired telecommunications carrier industry.

This industry has been rapidly shrinking in response to the increasing widespread use of cell phones and online forms of communication. The need for wired communications has become so low that 25 percent of all households do not even own a land line phone. Some even predict that by 2025, land line phones will completely disappear. [Read more...]

Preparing Your Finances for 2012

Looking ahead to a new year and planning for the future

It’s hard to believe that 2011 has passed so quickly and that 2012 will soon be here. Now is a good time to look back over the past year and assess your finances. Did your choices this year put you in better or worse circumstances? Do you have the information needed to make wise decisions in the next year? Are you prepared to protect your financial future?

The following excerpt from Conquer the Crash explains the importance of preparing and taking action now so that you’ll be ready for what’s ahead. You can read 8 more chapters from Conquer the Crash — 42 pages of critical information, including a list of imperative “dos and don’ts” — Free. Find out how below.


Chapter 14: Making Preparations and Taking Action

The ultimate effect of deflation is to reduce the supply of money and credit. Your goal is to make sure that it doesn’t reduce the supply of your money and credit. The ultimate effect of depression is financial ruin. Your goal is to make sure that it doesn’t ruin you. [Read more...]

The US’s Education Bubble

By Doug Hornig and Alex Daley, Casey Research

In the world of finance, there is always talk of bubbles – mortgage bubbles, tech stock bubbles, junk bond bubbles. But bubbles don’t develop only in financial markets. In recent years, there’s been another one quietly inflating, not capturing the attention of most observers.

It’s an education bubble – just not the one of student debt that has graced the pages of the New York Times and so many other publications in recent months.

The problem is not that we are overeducating ourselves as many would have you believe. Rather, it’s that we are spending a fortune to undereducate ourselves.

The United States has always been a very educated country. But it is becoming less and less so, especially in the areas that matter to our individual and collective economic futures. Our undereducation begins with a stubbornly high dropout rate among secondary education students. About a quarter of those who begin high school don’t finish.

In an educational system where graduation from high school at a minimum level often means no grasp of mathematics beyond basic arithmetic, no training in basic personal finance, and no marketable professional skills, this is an obvious problem We can and should do more to prepare high school graduates for the world they now live in. [Read more...]

Money Essentials for These ChaoticTimes

Trying times are upon us. There are a few essentials you absolutely must understand if you are going to thrive or at least survive financially over the next few years. If you want serious money, you have to get serious about money. You need to understand these fundamentals and never forget them. Here are the  fundamentals: Liquidate, Consolidate, Create and Speculate. The key to becoming wealthy is simple to state but totally incomprehensible to modern society.

Simply produce more than you consume and save the difference. But we are taught that consumption is the goal. He who dies with the most toys wins… Consumption is the good that will save our country. But is it true or is consumption what got us in this mess in the first place?

On the one hand consumption is the goal but we have been brainwashed into thinking that wealthy people are evil and therefore poverty must be good. And so society drives us toward consumption and poverty.

In this essay Doug Casey tells us that “self-made wealthy people may not be saints but they’ve proven they’re better than the average  in at least one important way: they can create and conserve wealth.” And people who create wealth create jobs. In the long run it is the wealth creators that will solve the problem not the consumers or those who would redistribute the wealth of others. ~Tim McMahon , editor

Money: How to Get It and Keep It

By Doug Casey, Casey Research

Even if you are already wealthy, some thought on this topic is worthwhile. What would you do if some act of God or of government, a catastrophic lawsuit or a really serious misjudgment took you back to Square One? One thing about a real depression is that everybody loses. As Richard Russell has quipped, the winners are those who lose the least. And as far as I’m concerned, the Greater Depression is looming, not just another cyclical downturn. You may find that, although you’re far ahead of your neighbors (you own precious metals, you’ve diversified internationally and you don’t believe much of what you hear from official sources), you’re still not as prepared as you’d like.

I think a good plan would be to approach the problem in four steps: Liquidate, Consolidate, Create and Speculate. [Read more...]

Welcome to the Inflation Data Blog

With the Web 2.0 revolution everyone enjoys responding to articles and being able to share good articles with friends and other sites. But  we have been a bit behind the curve because of the way our databases are hosted on InflationData.com so adding a blog has been impossible… up until now!

But we have wanted to be able to get your feedback for a while now so we have created another site to allow us to provide more articles quicker in a Blog format and it is right here on Inflationdata.net.

We would love to have your feedback on articles and suggestions for how we can improve this site.  It is just in its infancy so be gentle with us as we get up to speed.  All we ask is that you register as a new user before posting (it will only take a second or two).

Thanks!

Hope You Enjoy the New Site!

Tim McMahon, editor