Exclusive: The truth you don’t want to hear but I’ll tell it to you anyway.
I’ve been ruminating lately with the idea that the world is in a state of complete and utter chaos and it’s only going to get worse.
For those of us who don’t go home from a hard day’s work and then stay glued to episodes of “The Farmer wants a shag,” “The Bachelorette” or the latest reality cooking show, the writing’s fairly clearly on the wall.
For the first time in modern history, today’s emerging generation of twenty somethings will be worse off than generations that have gone before. In Australia, home ownership is a thing of the past with today’s young workers relegated to the very real prospect of renting forever, unless they have access to a hand up from their parents.
Jobs growth is also lacklustre. University graduates find there just isn’t the jobs out there that they’ve studied for and find themselves stocking supermarket shelves or working in IGA for $2 an hour.
Europe is a basket case. With record youth unemployment sitting at 50% in some areas and showing no signs of improving and the entire region a living teeming tinderbox of social unrest, resentment towards immigrants and a resurgence in far right political movements.
China is also languishing with development slowing as the govt realises it can’t afford to build ghost cities that no one wants or can afford to live in. And while the US has seen some recovery since the GFC it’s hard to see any significant improvement.
Back home interest rates are at record lows (hardly a sign of a strong economy), and now the spectre of deflation suggests that people are simply prepared to hold off on the next big purchase with the prevailing sentiment being that prices will fall further.
The housing sector is cooling with those individuals who mortgaged themselves to the hilt in a low interest rate environment now perfectly positioned to suffer financial ruin when interest rates inevitably rise again.
When this transpires we will see (once again) scores of people with negative equity in their homes forced to service mortgages they can’t afford for a property that’s diminishing in value. And the entire Ponzi scheme has been promoted, aided and abetted by the banks, govts, real estate agents and property developers who all profit from keeping real estate values high.
When it does transpire, and it’s only a matter of time, the shit is really going to hit the fan.