Some Economic Data in Australia Is Dysfunctional

Some Economic Data in Australia Is Dysfunctional

The one consistency we are seeing economically is soft announcements – yet for some very strange reason this week markets celebrated the March unemployment rate remaining steady at 5.2 percent. If the truth be known the true figure would be closer to 10 per cent given the system of calculating the rate is embarrassingly flawed.

Unemployment rate steady in March according to data released by the Australian Bureau of Statistics (ABS) the total number of jobs rose in Australia by 44,000, or 0.4 percent, to 11,491,200 in the month. To show how flawed this method of calculation is in March we have +44,000 where the previous four months recorded -15,400, +48,100, -36,600 and -3,700. The Australian construction industry has been contracting monthly for the last 22 months. Roy Morgan reported in January that unemployment had spiked 1.7 percent in January to take the rate to 10.3 percent – the ABS reported that the rate by their calculation was 5.1 percent.

The problems when applying the ABS methodology of counting is actually quite embarrassing given you are considered employed as long as you qualify by working just the one hour each week. So if you are an unemployed banker working part time delivering pizzas a few nights each week you are deemed employed even though you may be attending job interviews during the day. So by pure definition the system is somewhat narrow should you be unemployed yet broad and misleading if you are employed. The Reserve Bank of Australia (RBA) works from the ABS unemployment statistics when assessing the cash rate – little wonder as to why, consumer confidence is in serious decline.


Mr. Mooney you never cease to amaze me with your prying eye in the skies – when I first saw this picture I thought this is a very special moment that the majority of city – slickers would never have seen before.

Monthly inflation measure would have seen earlier rate cut: Paul Bloxham so here we go again with another flawed furphy. The introduction of a monthly inflation measure “as used by almost all other OECD countries” would have seen a cautious RBA cut interest rates this month, says a former RBA economist and current HSBC chief economist for Australia.

So you’re actively employed in Australia if you work just one hour a week and nearly every OECD country and most developing countries have access to monthly CPI data yet, Australia still relies on quarterly data. Somewhat amazed that in this day and age that Australian economists and politicians have never asked: why are we still in the dark ages of a third world economy? Maybe the “World’s Greatest Treasurer” has an answer?

It is quite amazing just how dysfunctional our economic reporting is in Australia today which raises some serious questions as to why we are so embarrassingly late with data reporting. My head shakes in total disbelief and ponders what other significant economic data flaws Australia urgently needs to address – after all this is 2012 not 1912.

Australians pay off their mortgages faster than Americans: RBA well this report smashes the ‘doom and gloom” fraternity who continue to speculate a crash with the Australian housing markets. There will be crashes just not anytime soon. The reason why Australians pay down their mortgages faster than Americans is simple: if they default they are bankrupted. In America one simply returns the keys and moves on to another home. Having said that mounting credit card bills drive bankruptcy boom in western suburbs.The 2770 postcode – Mount Druitt, Minchinbury and surrounds – was the most affected, with 163 bankruptcy declarations. In comparison Mosman filed 22 bankruptcy applications which is one of the lowest delinquency rates within Australia.

Not a week goes by where I’m not critiquing our Mosman market where the report card remains impressive when compared to comparable property markets. Mosman now has just 98 houses on the market which is significantly down from the 145 on March 3 this year. We can only rely on anecdotal sales evidence so this evidence is compelling.

RWM Research predicts that Mosman will not see available properties on the market getting anywhere near 145 until possibly September 2012 – we predict a very tight next five months of trading. It will be real estate agencies that default not households.

    .MOSMAN – 2088

    • Number of houses on the market last week– 114
    • Number of houses on the market this week – 98
    • Number of apartments on the market last week – 103
    • Number of apartments on the market this week – 105

    CREMORNE – 2090

    • Number of houses on the market last week– 11
    • Number of houses on the market this week – 11
    • Number of apartments on the market last week – 26
    • Number of apartments on the market this week – 30

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 13
    • Number of houses on the market this week – 14
    • Number of apartments on the market last week – 50
    • Number of apartments on the market this week – 51

    Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate
• Click Here

For this week’s open for inspections –
• Click Here

I always chuckle when I hear that politicians don’t pay attention to the polls – even though state polling in Victoria, NSW and Queensland predictions proved to be 100 percent accurate. Labor on the nose in every state so I was interested to read an internal federal Labor polling which was conducted by former Labor senator John Black. The result?

46 of Labor’s current 72 members of the House of Representatives would lose their seats at the next federal election, including Bill Shorten, Stephen Smith, Greg Combet, Simon Crean and the “World’s Greatest Treasurer” Wayne Swan. The next generation of Labor leadership would be wiped out. Given the polls seventy percent of Australians would argue that this is exactly how Australia can “move forward’.

Electricity price rises: blame the carbon tax, says NSW where last year, IPART predicted electricity prices would increase by between 2 and 10 percent – well they announced yesterday the increase is now 16 percent.
Everyone is doing the numbers and it is not looking pretty.

For voters they keep seeing that the numbers up!

Cheers ^__^

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