Voodoo Economics!

This is a chart compiled by demographer Bernard Salt who was key note speaker at our conference in 2016.

His chart shows the huge jump in the population (demand for property) in particular Perth, Melbourne, Brisbane and Sydney. But, you knew that didn't you!

Guess who doesn't? You got that right, Mr Byres from APRA and the Reserve Bank Governor, Mr Lowe. Both these guys are beavering away to try and limit the amount of construction of dwellings in these cities. As incredible as it sounds they believe that by limiting new supply they will contain future price growth! They believe that by increasing interest rates to potential new buildings they will increase supply!!

When there is a cyclone and less supply of bananas in the store logic shows us that the price of bananas goes up. This is called "supply and demand setting the price". Not APRA and RBA. If they are in charge of the banana market after a cyclone they would set out putting on restrictions of supply of new seasons bananas. They would argue for less bananas to come into the stores after the cyclone.

Weird logic!

What are our governments, State and Federal, doing to counteract this "voodoo economics"? Nothing!

Far from encouraging new construction, new supply and property price moderation, APRA and the RBA are actively encouraging banks to profit gouge. Abuse their monopoly powers by pushing up interest rates on investors. Byres and Lowe "voodoo economics" has this consumer rip off somehow controlling prices. This "voodoo economics" is taking money out of consumers all across Australia not just in Sydney. This "voodoo economics" fails to see that once this money comes out of the consumer pockets on a regular basis, it is not being spent and creating jobs.

This "voodoo economics" is hurting our two million people who are unemployed or underemployed.

What is our Treasurer doing? What are our State Treasurers doing? What is your local member of parliament doing?

Regards,

Kevin Young // Club Founder