Irish Property Market chat II - *read mod note post #1 before posting*

During the last pension expropriation by the state, the CEO of the company I worked for (an Allianz branch) made a rule where the company would fund the pension levy for all staff. He told us about in a townhall meeting and rightfully called it out as outright theft. Why is it men of integrity like that are not to be found in the halls of power?

Anyways, I agree with you that the state will not make these illegal because it may just want to slip its unctuous fingers into the pot at some point. Then again, it's not like the state doesn't play fast and loose with law as it already is. I think that when it comes to pensions, it would not be a bad idea to buy gold bullion and bury it where Mr Taxman would never find it.

So yes, centrist politicians. No need to import the extremely corporatist right-wing ideology of American political media over here.

I've just told you the article was reprinted from a British magazine.

I'll post what I like. Some people might like to know what the situation is for small landlords in other countries.

Number 1 reason any right to housing referendum should be voted down unless its coupled with the responsibilities of same

Maybe there is too many men of "integrity" as defined by the financial sector in the corridors of power

Heaver forbid we forget the reason the pension levy was brought in in the first place

Its a good point. The major difference between the Australian system I mentioned is that the individual effectively owns their own pension (via trust structure) and hence it is not the property of the Government. Problem solved. The Govt benefits through (low) taxation on contributions going in. Income & profits earned via investments inside the fund are taxed up until retirement age is reached.

They have since introduced a first home buyer saving deposit scheme called the First Home Super Saver Scheme (FHSS scheme) which permits members to make voluntary contributions of up to AUD$15,000 each financial year (remembering that only the employer has to make manditory contributions to the pension).

The advantage is that voluntary contributions are made from pre-tax income and receive concessional tax treatment of 15%. Also the deeming rate is higher than interest rates applicable to a normal savings account (yes, you can still earn a small amount of interest in Aus). This scheme allows for a maximum of $30,000 can be released from your super to use as a deposit for your first home. From 1 July this year, this amount is increasing to a maximum of $50,000.

QE doesn't generate inflation. It is the fiscal spending that generates it, the fiscal spending was required to deal with the impacts of covid on the economy but it could be argued that the spending was overcooked which resulted in extra money in consumers pockets.

In my opinion there are 3 main factors to the inflation we are seeing.

1) The expectation of inflation due to higher inflation rates seen in recent years due to supply side issue, build up of savings because people couldn't spend and the base effect on inflation up to Jan/Feb this year especially in relation to oil/gas where even if demand and supply was the same as prior to the pandemic we would still see inflation of 3-4% because oil dropped to such a low price in 2020. (i.e. the reasons for transitory inflation have resulted in permanent inflation because it ended up raising the expectation of future inflation and business raised prices to get ahead of it and in turn generated more inflation.

2) The energy crisis brought about by growth in the economy resulting in more demand and the war in Ukraine.

3) The labour market being very strong which is enabling employees to negotiate higher wages whether it is due to a shortage or/and because inflation was high in 2021.

The fed's labour market is in a different place to the EU (but the EU is catching up quickly) and this is the main factor for differences in the speed of implementing rate rises.

Just because the Fed is raising rates does not equal 'that they recognise QE has caused issues that need to be addressed'. All it is telling us that the Fed believe that we will see a secondary round of inflation due to wage increases and they need to act on this by slowing down the economy. The Eu have claimed that they are yet to see a secondary round of inflation but I think this is changing very quickly.

Whether the central banks raise rates or reduce QE is irrelevant because both responses lead to a higher interest rate environment.

The only home owners that benefit from undertaking QT and not raising rates are people with tracker mortgages.

Anyone getting access to new credit will end up paying more for it regardless of a rate rise or QT or Both taking place which results in the economy slowing down as demand for lending should drop which reduces the money supply and as a result inflation.

I mostly agree except on the principle that fiscal spending was needed to prop up peoples incomes owing from covid shutdowns of businesses etc.

When you pay all those people to not work it defacto generates inflation - you have added a load more money into circulation than there was/should be. Hospitality workers for example, would have their wages paid by business who gets money from other workers spending. Close the business and the other workers arent buying pints and food, they spend on something else. The hospitality workers still get paid, but by government, and they spend money too. Now you have an increased money supply for the sectors that are still open and doing business. The alternative is not good either, but you have to recognise that this approach will always generate inflation.

jesus christ, no they didnt, inflation has become a global issue, its clearly got to do with the disruptions caused, and virtually nothing to do with the money supply, ffs!

...or maybe the government can simply keep topping up peoples pay and/or electricity accounts, until inflation settles, thus reducing the pressure on employers...

guess the government unfortunately doesn't have a bottomless pit but then again businesses will face these incessant energy rises also... serious recession surely on the way if these severe price rises keep coming.. most regular consumers will have to completely re evaluate their household budgets .. the knock on effects could be quite severe on certain sectors

a 35% increase in electricity standing charge no less .. what next? time for cut backs .....

https://m.independent.ie/business/personal-finance/esbs-electric-ireland-latest-to-announce-a-massive-energy-price-rise-41503274.html