A lot of people are asking what will happen in 2010 with the Australian economy that is a very good question.This is just a small part of what I see happening because of all of the stimulus programs around the world. We are going to see a return of inflation and when inflation is on the increase then this will be followed by an increase in interest rates which is what we are already starting to see happening here in Australia.
We are the first country in the world to increase interest rate which has happened in 2 straight months with talk of more rates to follow next year.Consumer confidence dropped in the month of November by 2.4 % that is a direct response to increasing interest rates to soon.Keep an eye on what is happening in the USA they are still 1/3 of the worlds GDP so a the rest of the world still rely on selling their products to the USA. America is still contracting in their economy and this still will reflect on the rest of the world.
It is time to develop a life style of debt reduction most people in the property market are always trying to talk the market up just so they can make a sale.I am also a Property Agent I have lived threw a number of recessions and when the economy is not going so well it can be very tough to keep our heads above water when we have to much debt.This can put a lot of pressure on the family and is the main reason for a break down in the family unit.
Parents divorce and children are caught in the middle of a break down of their once loving family environment and it goes on all because of Debt.Just remember this Global Economic problem is not over yet so don’t live beyond your income learn to live on less than you earn.Do this in the good times and the bad times and work towards being debt Free