A manufactured re-modelling?

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RECESSION FEARS

As Australia faces a period of heightened economic uncertainty, voices from across the financial and political spectrum are raising concerns about the possibility of a recession.

With inflation still above target, interest rates at a 12-year high, and oil spiralling out of control, Australia is grappling with multiple factors that could slow down economic growth.

Economists, business leaders, and government officials have all expressed caution, warning that Australia may be heading toward a recession, or a period of sluggish growth at least.

The Reserve Bank of Australia (RBA) has been at the centre of the debate, as its aggressive monetary policy raises questions about the long-term health of the economy.

Philip Lowe, Governor of the RBA, has noted the consequences of allowing inflation to become entrenched include a severe recession and a sharp rise in unemployment.

He has cautioned that the economy could face below-trend growth in the years ahead if the Iran-U.S con-flick is continued for months to come.

“We are in the midst of a difficult adjustment,” Lowe said, adding that while inflation is on the decline, it remains too high and that the economy must endure some “short-term pain”.

In a bid to curb inflation, the RBA has increased interest rates several times since 2022, with the official cash rate currently sitting at 4.1%.

But rate hikes come with the risk of stifling consumer spending and business investment.

In addition to the RBA’s actions, Australian government officials have been voicing similar concerns. Former Treasury secretary, Martin Parkinson, says Australia faces the risk of stagflation due to the global economic fallout from the Middle East saga.

The federal government, led by Prime Minister Anthony Albanese, has so far refrained from making any alarmist statements about the likelihood of a recession.

Instead, the government has stressed the need for ‘a balanced fiscal approach’.

However, there certainly is a growing unease in society.

While the government is optimistic about long-term prospects, policymakers are fully aware that a period of slower growth is highly probable.

Independent economists have been even more vocal in their concerns about a recession.

Shane Oliver, Chief Economist at AMP Capital, has pointed out that while Australia might avoid a full-blown recession, there is a significant risk of a “mild” downturn due to high interest rates, subdued consumer demand, and a slowdown in global growth.

“We’re facing a perfect storm of slowing global growth, tight domestic monetary policy, and rising costs. Australia is unlikely to escape unscathed,” Oliver recently commented.

Similarly, Gabrielle Chan, an economist at Australian National University, has expressed concerns about the lagging effects of interest rate hikes. She noted that these rate increases take time to fully impact the economy, and effects are only just beginning to be felt.

“The risk of a technical recession is very real,” she warned, adding that the slowdown could affect everything from consumer spending to business investment.

The business community has also sounded the alarm, with CEOs and industry groups highlighting the negative impact of higher interest rates and rising costs.

The Business Council of Australia (BCA), which represents some of the nation’s largest companies, has urged the government to introduce targeted measures to support businesses through the economic slowdown.

In a recent statement, the BCA acknowledged the growing risks to business confidence, noting that while businesses are resilient, the rising cost of doing business is putting pressure on investment and hiring decisions.

Craig James, Chief Economist at CommSec, agreed, suggesting that while the Australian economy is not yet in recession, the risks are mounting.

“The high cost of capital, coupled with ongoing inflationary pressures, is having a material impact on businesses’ bottom lines,” James said.

So, strap yourselves in, folks – it appears the ride is only going to get bumpier from here.

This con-flick has demonstrated not only weaknesses of the Australian economy, but also the very trap of globalization itself in the modern world.

The more we rely on others, the more we will be in trouble during times like this.

CBDC GLOBALIZATION TRAP

The entire world has fallen into a deceptive spider web of international commerce.

Globalization increases interdependence, meaning countries rely on each other for things like food, energy, medicine, and manufacturing.

Discussion: Globalization, political correctness and opposing the state
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During crises – like the Strait of Hormuz blockage – this interconnectedness can backfire. Supply chains break, shortages occur, and countries may struggle if key imports are cut off.

The international economic environment is a source of concern. The world economy remains fragile, with slowdowns in key markets like the United States and China.

The International Monetary Fund (IMF) has downgraded its global growth forecast, citing persistent inflation and rising interest rates in advanced economies.

These international headwinds could affect Australia’s trade, especially in commodities like iron ore and coal, which are vital to the country’s export sector.

While Albanese is hopeful for a “soft landing” to avoiding a recession, the growing chorus of warnings suggests that Australia’s economic path forward is fraught with challenges.

Challenges that have all been engineered to appear.

Let’s not forget they want digital ID, digital currency – and not just that, “programmable money” that can expire, be region restricted, and other dystopian control measures.

“Programmable Money”: How Central Banks May Implement ‘Smart Digital Currencies’
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The Reserve Bank of Australia has already been trialling Central Bank Digital Currency pilot programs since 2023.

Reserve Bank launches centralised digital currency pilot program
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As interest rates continue to weigh on household budgets and business confidence, the risk of a slowdown remains significant. The prospect of an Australian recession is certainly present.  

While the government and the RBA are focused on managing inflation, economists and business leaders alike are urging caution, warning that the country may need to brace for a period of slower growth ahead.

Only time will tell whether Australia can navigate these headwinds without slipping into a full-blown downturn.

A downturn that was planned by design all along to bring about a New World Order.

Do you think Australia is headed for a recession?

Be sure to leave your thoughts in the comment section below!

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