1 00:00:00,149 --> 00:00:04,974 Australian home values have grown by, look at 2 00:00:05,014 --> 00:00:09,418 this, 193%, which is wild. Inflation is at 2.4% in 3 00:00:10,679 --> 00:00:14,283 2025. Here's the problem I've got with that. One in five people in Australia are 4 00:00:14,343 --> 00:00:18,247 now on the NDIS. We're now becoming even more unproductive because we're incentivising 5 00:00:18,347 --> 00:00:21,910 poor behaviour. So if you want to make money for free, go get disabled. Since 6 00:00:22,130 --> 00:00:25,313 August 2022, 72% of all 7 00:00:25,353 --> 00:00:28,675 jobs have been in the public sector. So 130 of every 8 00:00:28,715 --> 00:00:32,158 thousand people now work for the government. In Australia, it's the highest 9 00:00:32,338 --> 00:00:35,440 in almost any country in the world. In fact, Australia's at the top. Just when you 10 00:00:35,460 --> 00:00:38,682 think Australian government can do nothing stupider, they do something stupider. This is 11 00:00:38,702 --> 00:00:42,085 because I'm Lloyd James Ross, seven-figure investor and entrepreneur, and 12 00:00:42,105 --> 00:00:45,848 I've helped thousands of business owners and professionals turn financial stress 13 00:00:46,309 --> 00:00:49,591 into success. If you're stuck in old money habits, overwhelmed by 14 00:00:49,631 --> 00:00:52,874 investing, or unsure where to start, this is for you. I'll 15 00:00:52,894 --> 00:00:56,217 give you the mindset and strategies to take control, grow 16 00:00:56,237 --> 00:00:59,380 your wealth, and achieve financial freedom. It's time to make 17 00:00:59,400 --> 00:01:02,958 your money work for you. The Australian economic 18 00:01:02,998 --> 00:01:06,139 crisis explained. That's what this episode is all about. I want to 19 00:01:06,180 --> 00:01:09,981 dive deep with you into seven reasons why 20 00:01:10,182 --> 00:01:13,763 it's very obvious that the Australian economy is 21 00:01:14,224 --> 00:01:17,345 entering a very rough patch, a challenging period. But I want 22 00:01:17,365 --> 00:01:20,567 to explain this to you as best I can in simplest terms, so you really try and 23 00:01:20,607 --> 00:01:24,368 understand or can at least grasp what is actually happening in 24 00:01:24,428 --> 00:01:27,710 this particular country at this time. Now, the things I'm going to explain are happening in 25 00:01:27,770 --> 00:01:30,991 other countries as well, but specifically in our country in Australia, where 26 00:01:31,011 --> 00:01:34,433 I'm recording this episode, there are some things happening where on 27 00:01:34,473 --> 00:01:38,176 the surface, all looks robust. But underneath, 28 00:01:38,456 --> 00:01:41,660 when we pull back the curtain, some of these metrics will, and 29 00:01:41,720 --> 00:01:45,044 should, frighten you a little bit. Because the way 30 00:01:45,064 --> 00:01:48,769 we're headed is not going to be a prosperous time 31 00:01:48,809 --> 00:01:52,233 for a lot of us, and we're going to hit some challenges. But more 32 00:01:52,253 --> 00:01:55,677 than anything, I want you to understand what's happening in the economy. 33 00:01:56,298 --> 00:01:59,579 so you can be educated about well that's actually what's happening whereas what 34 00:01:59,619 --> 00:02:02,840 you might be thinking or you 35 00:02:02,880 --> 00:02:06,141 may be following something else or listening to your neighbor 36 00:02:06,181 --> 00:02:09,302 and it might be that you just don't really understand what's going on at all. So I'm 37 00:02:09,322 --> 00:02:12,623 going to use some data, some very current data to 38 00:02:12,963 --> 00:02:16,344 go through these different steps with you and just explain to you each part 39 00:02:16,364 --> 00:02:19,485 of it and how it's having an impact on the economy and specifically on you and how it 40 00:02:19,505 --> 00:02:22,706 can impact you, all right? So we're going to go with step number one 41 00:02:22,746 --> 00:02:26,088 first which is actually the complete illusion of 42 00:02:26,168 --> 00:02:29,490 prosperity, all right? So it's really about 43 00:02:29,970 --> 00:02:33,432 understanding GDP and GDP per capita. 44 00:02:33,833 --> 00:02:37,275 So what GDP stands for is gross domestic product. And in simplest 45 00:02:37,315 --> 00:02:40,857 terms, what that means is how much income the country produces. 46 00:02:41,317 --> 00:02:44,939 So how productive is the country, all right? So 47 00:02:45,260 --> 00:02:49,262 measuring gross domestic product is how the country's performing. But 48 00:02:49,823 --> 00:02:53,148 measuring real gross domestic product per capita, per 49 00:02:53,168 --> 00:02:56,593 capita just means per person, has declined in this country 50 00:02:56,653 --> 00:02:59,977 for six consecutive quarters, making it, buckle up, 51 00:03:00,258 --> 00:03:04,844 the longest per capita recession on record. So 52 00:03:04,864 --> 00:03:08,708 when people say, oh, we're not in a recession, because a recession is just two quarters 53 00:03:08,808 --> 00:03:12,071 of negative GDP growth. But what's happening is we've had 54 00:03:12,351 --> 00:03:15,714 declines in GDP per capita. So every single 55 00:03:15,794 --> 00:03:19,177 quarter for the last six consecutive quarters, we've actually 56 00:03:19,217 --> 00:03:23,081 seen your income drop. pound 57 00:03:23,101 --> 00:03:26,603 for pound relative to what's happening in the world. And it's actually the 58 00:03:26,904 --> 00:03:31,026 largest drop in real terms in the 59 00:03:31,426 --> 00:03:35,189 Western countries across all the Western democracies 60 00:03:35,489 --> 00:03:39,231 and economies, which is crazy because we were right up there and 61 00:03:39,271 --> 00:03:42,713 now it's falling consecutively and it's still falling. And 62 00:03:42,733 --> 00:03:46,536 I'm looking at a chart here at Pete in 2022. So right when COVID happened, 63 00:03:48,757 --> 00:03:52,279 And since then, well, like right in the guts of COVID. And when, from 64 00:03:52,319 --> 00:03:55,561 that point on, it's dropped drastically from, 65 00:03:56,801 --> 00:04:00,043 God, it's like, the index has been measured since 66 00:04:00,664 --> 00:04:03,825 2007, and it was on an upwards trajectory, but now 67 00:04:03,885 --> 00:04:07,187 it's just been dropping drastically. So, real income 68 00:04:07,207 --> 00:04:10,449 per capita is falling by a lot, and has 69 00:04:10,489 --> 00:04:13,991 fallen over the last, yeah, six quarters. And 70 00:04:14,351 --> 00:04:18,195 it's actually worse than the 71 00:04:18,475 --> 00:04:21,780 1980s recession, the 1970s recession from inflation, and 72 00:04:21,800 --> 00:04:25,124 the 1990s recession from the Asian currency crisis 73 00:04:25,164 --> 00:04:28,789 or the Japanese currency crisis. So it's now worse probably 74 00:04:28,829 --> 00:04:32,814 about by threefold than all of those. So 75 00:04:33,134 --> 00:04:36,537 whilst we're not in an actual recession 76 00:04:36,557 --> 00:04:39,799 because they're not recording negative GDP growth for the country, we 77 00:04:39,979 --> 00:04:43,661 are definitely in that for each person. So what 78 00:04:43,681 --> 00:04:47,364 that means is if it feels like you're poorer and 79 00:04:47,604 --> 00:04:51,827 you're working the same or harder for less real dispensable 80 00:04:51,867 --> 00:04:55,049 or disposable income, it's because you are. And 81 00:04:55,109 --> 00:04:58,570 what's caused that is is the next step. 82 00:04:59,071 --> 00:05:02,632 So what's the cause of this? Why has this happened? You've got to think about Australia 83 00:05:02,652 --> 00:05:06,193 being a productive country. And what happens in Australia 84 00:05:06,413 --> 00:05:09,574 is this. Generally, we take resources and 85 00:05:09,614 --> 00:05:12,815 we export them. That's really how we make a lot of our money. We're actually the 86 00:05:12,895 --> 00:05:16,136 richest country in the world from a resource perspective. So we should 87 00:05:16,156 --> 00:05:19,597 also be the richest per capita. But we're not because the policy isn't effective. 88 00:05:19,797 --> 00:05:22,958 The policy is the government. And the way the economy is working currently, it's 89 00:05:22,978 --> 00:05:27,239 not all the government's fault, it's not producing 90 00:05:27,379 --> 00:05:30,920 for the citizens. We can't just conjure up legislation 91 00:05:30,940 --> 00:05:34,702 to do that. So we're going to stuck in this Westminster democracy 92 00:05:34,922 --> 00:05:38,323 system, plus we're stuck in the private sector and the public sector 93 00:05:38,363 --> 00:05:41,624 and policy. It's a bit of a nightmare. So whilst we're the richest, we're 94 00:05:41,644 --> 00:05:45,286 also the poorest. We're poorest in sense of the 95 00:05:45,386 --> 00:05:48,891 growth in our personal income is falling. So 96 00:05:49,472 --> 00:05:53,457 this one thing has caused a lot of it, especially 97 00:05:53,477 --> 00:05:56,842 at a personal level. Here's what it is. Over the past 98 00:05:57,362 --> 00:06:02,311 two decades, the last 20 years, Australian 99 00:06:02,371 --> 00:06:06,534 home values have grown by, look at 100 00:06:06,554 --> 00:06:09,837 this, in the last week, 193%, which 101 00:06:10,338 --> 00:06:13,560 by and large, it's not a bad thing, but here's 102 00:06:13,600 --> 00:06:16,883 where it sucks for anyone who lives here, who's lived 103 00:06:16,903 --> 00:06:20,146 here for the last two decades. So back then, I was 21. So I 104 00:06:20,166 --> 00:06:23,348 was just entering my career. And so 105 00:06:23,388 --> 00:06:28,391 what's happened is prices in property have 2x, which is 106 00:06:28,511 --> 00:06:31,693 wild. In fact, they're probably 3x. A 200% return means 107 00:06:31,713 --> 00:06:35,736 they've doubled and doubled again. So if a property is worth $500,000 back 108 00:06:35,756 --> 00:06:39,158 then, it's doubled to a million, doubled again, so it's $2 million. But 109 00:06:39,278 --> 00:06:42,780 while that's been happening, this is where it gets wild. While that's been happening, 110 00:06:43,581 --> 00:06:47,512 wages have only grown by 81%. in 111 00:06:47,532 --> 00:06:51,255 the last 20 years. For example, if you were on 112 00:06:51,495 --> 00:06:55,098 $100,000 a year 20 years ago, which is considered a six-figure salary 113 00:06:55,138 --> 00:06:59,642 back then was considered amazing. You're on six figures. You're a 114 00:06:59,742 --> 00:07:02,844 high-end middle class. You're going on family holidays. You got 115 00:07:02,864 --> 00:07:09,057 a house. You're doing well, really well. Over 116 00:07:09,097 --> 00:07:12,680 that time, the wages didn't do what property did. So property basically, 117 00:07:12,701 --> 00:07:15,923 let's call it 200%. Wages didn't go to 200,000 to 400,000. They didn't. They grew by 81%. So your 100K went to 118 00:07:16,003 --> 00:07:24,708 180K. Got it? but 119 00:07:24,828 --> 00:07:28,292 property went from 500,000 to 2 million. So 120 00:07:28,593 --> 00:07:32,177 your wages and wage growth at call it, you know, three, three 121 00:07:32,197 --> 00:07:36,122 and a half percent per year, that's happened. But 122 00:07:36,302 --> 00:07:39,826 properties have gone at like seven to 8% a year. It's just not catching 123 00:07:39,866 --> 00:07:42,988 it. And so what has happened too is rents have gone up at 124 00:07:43,028 --> 00:07:46,310 the same, not quite the same rate, thankfully, but they've gone up as well 125 00:07:46,330 --> 00:07:50,092 with the price of properties. And so you're seeing this massive disparity. 126 00:07:50,312 --> 00:07:53,553 Now let's think about that for a second. What if we scale out another 127 00:07:53,593 --> 00:07:57,475 20 years and do another 200%, another 80%? We're 128 00:07:58,076 --> 00:08:01,137 gonna get more of a disparity. And so less people being able to 129 00:08:01,297 --> 00:08:05,879 actually afford shelter. Not own a home, listen up very closely. Actually 130 00:08:06,300 --> 00:08:09,801 afford shelter. And last, 131 00:08:09,821 --> 00:08:13,103 I was listening to a survival expert recently. I forget what show 132 00:08:13,123 --> 00:08:17,144 it was on on YouTube. And they actually had this question. They said, what are the three most 133 00:08:17,264 --> 00:08:20,485 important human needs in nature? Like, what are the three things 134 00:08:20,505 --> 00:08:23,627 that if you don't get, you die? I'm like, oh, that's easy to answer that 135 00:08:23,667 --> 00:08:26,788 question. They're like, what is it? I'm like, water. If you don't go for 136 00:08:26,808 --> 00:08:30,289 water for three days, you die. You learn this when you're in school at like grade 137 00:08:30,409 --> 00:08:33,490 four flipping geography. You learn whatever it is you're in, 138 00:08:33,530 --> 00:08:37,612 what class. You learn pretty fast, outdoor education. that 139 00:08:37,632 --> 00:08:41,316 if you don't have water in three days, you die, right? We all know this. And 140 00:08:41,477 --> 00:08:44,881 second is food. If you don't get food for three weeks, you die. Now, 141 00:08:45,501 --> 00:08:49,005 that's how I grew up and that's what I learned, but it's wrong. The 142 00:08:49,426 --> 00:08:52,770 one basic human need if you're in nature and you need to survive and 143 00:08:52,810 --> 00:08:56,334 you don't get it first, you die. And 144 00:08:56,374 --> 00:08:59,765 it is shelter. Shock, I 145 00:08:59,805 --> 00:09:04,428 was like, what, how? Because of things like exposure. Hypothermia, 146 00:09:05,029 --> 00:09:09,212 right, can cook you, well, it doesn't cook you, hypothermia does the opposite. Hypothermia 147 00:09:09,232 --> 00:09:12,734 can freeze you to death, right? And if you don't get shelter, you're exposed 148 00:09:12,754 --> 00:09:15,897 to the elements. It's very, if you go without shelter for 149 00:09:15,937 --> 00:09:19,419 three days, the impact to your body is irreparable. 150 00:09:19,439 --> 00:09:23,523 It can really kill you. So think about that. We're 151 00:09:23,563 --> 00:09:26,685 actually making shelter the number one human need. We're making it 152 00:09:26,785 --> 00:09:30,003 unaffordable for our citizens. I've never said this 153 00:09:30,043 --> 00:09:33,748 before, but it's a flippant disgrace. It's a disgrace. 154 00:09:34,570 --> 00:09:37,734 It's a disgrace. We should be, I mean, the fact that there's 155 00:09:37,794 --> 00:09:40,865 not many... We just take it on 156 00:09:40,905 --> 00:09:43,967 the chin, right? It's not, and 157 00:09:44,007 --> 00:09:47,189 if you're one of these people who's bought, have taken this, have 158 00:09:47,489 --> 00:09:50,671 risen or have floated up on this high tide of 159 00:09:50,731 --> 00:09:54,073 property prices and you're all high and mighty, well, that's great for 160 00:09:54,113 --> 00:09:57,235 you. But what about your children and grandchildren? Like, I 161 00:09:57,255 --> 00:10:00,497 think about my niece and nephew, like, what are they gonna do? It's 162 00:10:00,517 --> 00:10:04,179 like, oh, bugger them. We've got wealth in our family. Well, that's 163 00:10:04,219 --> 00:10:07,561 a very narcissistic, arrogant approach to take. Our 164 00:10:07,721 --> 00:10:10,962 senior generation or the policies being made in this country are not 165 00:10:11,022 --> 00:10:14,704 supportive of young people next generation. It's a God, it's a disgrace. It's 166 00:10:14,724 --> 00:10:17,845 disgusting. Politicians should be limited to 167 00:10:18,025 --> 00:10:21,367 one house. They shouldn't be incentivized to buy multiple houses because 168 00:10:21,427 --> 00:10:25,088 they can make policy that pumps property prices. They can immigrate this 169 00:10:25,128 --> 00:10:28,409 country where they're doing it right now. Okay, we'll come to that in a second. So 170 00:10:28,429 --> 00:10:31,931 the reason why that's happening, the reason why this happened is two reasons. Why property prices are 171 00:10:32,151 --> 00:10:37,754 way outperforming wages. It's because of this. Firstly, 172 00:10:38,034 --> 00:10:41,118 interest rates in the 70s were at about 17%, because they had 173 00:10:41,138 --> 00:10:44,401 to break inflation, right? Paul Volcker came out, he 174 00:10:44,421 --> 00:10:47,725 was the chair of the Federal Reserve in America, and the world was 175 00:10:47,765 --> 00:10:50,909 kind of sitting at high interest rates of 17%. And what he had to do was he 176 00:10:50,929 --> 00:10:54,033 had to lift rates up to get inflation back down, and he 177 00:10:54,073 --> 00:10:57,857 lifted rates to 17%. And when he did that, What 178 00:10:57,897 --> 00:11:01,441 happened was when you raise interest, this is an absolute economic policy. 179 00:11:01,761 --> 00:11:04,964 If you've ever studied any level of macroeconomics, this is an 180 00:11:05,224 --> 00:11:08,827 absolute fact. It's physics. It's not, it's mathematical, which 181 00:11:08,847 --> 00:11:12,130 means it's not up for dispute. But when you have, when rates 182 00:11:12,190 --> 00:11:15,313 go up, and by rates, I mean the interest rate at 183 00:11:15,333 --> 00:11:18,456 the reserve bank, when it goes up, the 184 00:11:18,516 --> 00:11:22,248 value of assets falls. Because the 185 00:11:22,308 --> 00:11:25,409 value of the future cash flows discounted back at a discount rate, 186 00:11:25,429 --> 00:11:28,691 it's called the time value of money. When you discount those future cash flows back to 187 00:11:28,711 --> 00:11:31,953 a net present value today, the net present value formula, which is 188 00:11:31,993 --> 00:11:35,415 a mathematical formula you learn in any finance education, right? 189 00:11:36,755 --> 00:11:40,017 When you discount them back at a high interest rate, the current value of 190 00:11:40,057 --> 00:11:43,619 the property or the asset, whatever it is, shares, property, 191 00:11:43,679 --> 00:11:46,847 bonds, is less today. Let me 192 00:11:46,867 --> 00:11:50,370 just rephrase that for you so you understand. When you have a high interest 193 00:11:50,390 --> 00:11:53,532 rate and you discount the future cash flows back from 194 00:11:53,552 --> 00:11:56,755 the future to today's value using a high interest rate, 195 00:11:57,115 --> 00:12:00,298 it means the asset is a lower value. So that's 196 00:12:00,338 --> 00:12:04,241 why in 1990, when rates were at 17%, property 197 00:12:04,301 --> 00:12:07,563 prices were very low compared to your wage. In fact, two to three 198 00:12:07,604 --> 00:12:11,126 times annual wages. So if you were making 50 grand back then, a property 199 00:12:11,166 --> 00:12:14,749 was about 100,000 to 150,000. very affordable, everyone 200 00:12:14,769 --> 00:12:18,691 was buying, it was easy to pay it off, no dramas, okay? That's 201 00:12:18,731 --> 00:12:22,093 fine. That's actually very, three to four times earnings is a nice fair 202 00:12:22,113 --> 00:12:25,295 value. And in America right now, it's about 4.5, which is very 203 00:12:25,355 --> 00:12:30,118 reasonable, okay? In Australia, it's 13 times 204 00:12:30,819 --> 00:12:34,941 earnings. And in Japan in the 90s, before the 205 00:12:34,981 --> 00:12:38,263 great kind of sort of big property bubble back 206 00:12:38,283 --> 00:12:41,349 then for Japan, It was at 18 times earnings. So 207 00:12:41,369 --> 00:12:44,852 we're not too far off. Anyway, so back in 1990, when 208 00:12:44,892 --> 00:12:48,094 rates were all time highs, property prices were all time lows. But 209 00:12:48,194 --> 00:12:51,256 guess what happened in the last 30 years? Yes, you guessed it. 210 00:12:51,636 --> 00:12:55,038 Rates went from 17% to 1%, 1.25%, from 17 to one. So what happens when you 211 00:12:55,058 --> 00:13:04,804 drop rates? It does this, it does this. So 212 00:13:04,824 --> 00:13:09,646 when you drop rates, you lift asset prices. That's 213 00:13:10,486 --> 00:13:13,727 because the future cash flows are discounted back at a lower rate, which means the asset value 214 00:13:13,747 --> 00:13:17,108 is worth more. So you haven't been in a property boom, 215 00:13:17,368 --> 00:13:20,689 you've been in a rate reduction cycle of 30 years. And 216 00:13:20,729 --> 00:13:24,571 you didn't create that. You're not a genius. You're not that smart. 217 00:13:25,731 --> 00:13:29,532 You just bought, it's timing. Arguably, honestly, 218 00:13:29,812 --> 00:13:36,253 it's luck. You happen to be born in 19... in 219 00:13:36,273 --> 00:13:40,054 the 1960s. That is the ovarian lottery. You 220 00:13:40,094 --> 00:13:43,235 didn't plan that. You flipped it. 221 00:13:45,176 --> 00:13:48,357 And now you're like, I'm flipping property investment. Well, let's see what 222 00:13:48,417 --> 00:13:51,738 happens when interest rates go 223 00:13:51,778 --> 00:13:54,959 back up. They used to be at seven and 224 00:13:54,979 --> 00:13:58,480 a half percent, which is about roughly on average in the last thousand 225 00:13:58,500 --> 00:14:02,055 years what they've been at. It's only recently because 226 00:14:02,095 --> 00:14:05,296 of COVID that they really, and the GFC, that they really dropped them 227 00:14:05,336 --> 00:14:08,578 so drastically. It's truthfully, like it's only recent. In fact, 228 00:14:08,938 --> 00:14:12,580 interest rates got as low as pot, as low as they've ever been for 229 00:14:12,961 --> 00:14:16,182 5,000 years in your lifetime. So think about it. 230 00:14:16,222 --> 00:14:19,745 What happens when rates go back up? Yes, the value of your real estate falls. Welcome 231 00:14:19,785 --> 00:14:22,987 to the party. You get it. What's holding it up and propping up 232 00:14:23,187 --> 00:14:26,489 unnaturally is we're immigrating 600,000 people 233 00:14:26,529 --> 00:14:29,711 to this country every single year. The average over the last 10 years was about 200,000, so 234 00:14:29,751 --> 00:14:33,994 it's tripled. Of course, you're going to have stress 235 00:14:34,435 --> 00:14:37,717 on the infrastructure and the housing of the country because you're not building enough houses to 236 00:14:37,997 --> 00:14:41,319 house them. And it 237 00:14:41,359 --> 00:14:44,500 just doesn't need to happen. It's a policy that can be stopped immediately by 238 00:14:44,540 --> 00:14:47,621 government. But the reason why they're doing it is because they don't want to face a recession because they don't want 239 00:14:47,641 --> 00:14:50,962 to get out of power. And they also, guess what? They own half 240 00:14:50,982 --> 00:14:54,164 a dozen houses themselves. It should be 241 00:14:54,204 --> 00:14:57,385 bloody banned, I tell you, for them to have houses because they're making policy to 242 00:14:57,445 --> 00:15:02,981 pump their own bloody equity up. I'm disgusted You 243 00:15:03,021 --> 00:15:06,605 can't tell. Disgusting. So that's what's happened. Now, 244 00:15:07,126 --> 00:15:10,591 when rates go back up and your value falls, yes, a 245 00:15:11,352 --> 00:15:14,756 rising tide lifts all boats. So when we have a rising tide that's 246 00:15:14,836 --> 00:15:18,101 happened, you don't know who's swimming naked until the tide goes out. But when 247 00:15:18,161 --> 00:15:21,565 rates go back up, The tide, my friends, will go back out and you'll see 248 00:15:21,605 --> 00:15:24,889 who's swimming naked. Swimming naked means this. You will see who's 249 00:15:24,929 --> 00:15:28,233 got leverage out to their eyeballs. You will see very quickly who's 250 00:15:28,273 --> 00:15:31,537 got 10 properties fully geared to their eyeballs. Because when rates go back 251 00:15:31,677 --> 00:15:36,523 up, and they will, because the bond yields are going up, which we'll talk about in a second, they 252 00:15:36,543 --> 00:15:39,722 won't be able to escape. Because whenever it runs for the exit, They ain't 253 00:15:39,742 --> 00:15:44,286 getting out. Cause when everyone tries to sell their property at the same time, it 254 00:15:44,306 --> 00:15:47,788 doesn't end well. Okay. All right. So dwellings have risen faster 255 00:15:47,808 --> 00:15:51,431 than wages long-term. Third part, mortgage stress 256 00:15:51,451 --> 00:15:55,974 and household budgets. So interestingly at the moment, by 257 00:15:55,994 --> 00:15:59,617 the numbers, these are crazy numbers. 258 00:15:59,637 --> 00:16:03,200 Okay. So the data points of this, the now, the 259 00:16:03,340 --> 00:16:07,243 app previous to the recent bubble in real estate and 260 00:16:07,263 --> 00:16:11,535 the policy and immigration, the 261 00:16:11,695 --> 00:16:14,917 average percentage of your household income that went to paying 262 00:16:14,937 --> 00:16:18,500 your mortgage was about 30%, okay? About 30%, and 263 00:16:18,520 --> 00:16:23,584 that's fairly reasonable, right? But now, it's 49%, which 264 00:16:23,644 --> 00:16:28,268 means if you've got a household that's earning 200,000, let's say both 265 00:16:29,069 --> 00:16:33,872 the woman and the man are making 100 grand each, okay? Six figures. And 266 00:16:33,892 --> 00:16:37,395 they're sending their kids to daycare, because they're both working, they can't afford to stay 267 00:16:37,415 --> 00:16:40,786 home and look after the kids. So let's say net into 268 00:16:40,806 --> 00:16:44,347 their, if they've got one child, it's 25,000 a year. So if you've 269 00:16:44,367 --> 00:16:47,508 got two kids, it's 50. Now they do get some rebates from the government. So let's call 270 00:16:47,548 --> 00:16:51,209 it 20 grand. So they'd really make it 180,000 combined. That's 271 00:16:51,289 --> 00:16:55,110 before tax. After tax, probably about 120, let's 272 00:16:55,130 --> 00:16:59,752 say. So you've got 120 coming in. That's around about 273 00:16:59,972 --> 00:17:03,613 $2,500 a week, right? Think about that. Listen to this very closely, because 274 00:17:03,633 --> 00:17:06,974 you've got to pay your mortgage with after tax dollars, not before tax dollars. So 275 00:17:07,054 --> 00:17:12,120 out of the 2,500 a week, $1,250 is 276 00:17:12,180 --> 00:17:15,707 going to the mortgage. Like, and 277 00:17:15,727 --> 00:17:18,934 then the family's supposed to live off $1,250. Are you kidding me? Like, and 278 00:17:18,954 --> 00:17:22,646 then groceries of like $300. So. No 279 00:17:22,686 --> 00:17:26,089 wonder people are struggling, like no wonder they're telling the government, please reduce interest 280 00:17:26,109 --> 00:17:29,411 rates, because you can't, they can't afford their mortgage, right? Because they come into 281 00:17:29,451 --> 00:17:32,733 the market and they're buying at all time highs with borrowings and they're both 282 00:17:32,853 --> 00:17:36,156 strapped because they're both already working kids in childcare. There's nowhere 283 00:17:36,196 --> 00:17:39,758 else to go. Like we're cooking our citizens. It's 284 00:17:39,778 --> 00:17:43,141 a flippant disaster. It's a joke, right? So now take, 285 00:17:43,161 --> 00:17:48,084 check this out. You'll now take 21 to 46 years, to 286 00:17:48,185 --> 00:17:51,831 save up, not for the whole property, for the deposit, for 287 00:17:51,872 --> 00:17:55,779 an entry-level home. And the mortgage will take 63% of 288 00:17:55,819 --> 00:17:59,691 the median income yearly. That's where we're headed. Right? 289 00:18:00,272 --> 00:18:03,595 So the income debt to income ratio and the mortgage rate is 290 00:18:03,615 --> 00:18:07,058 getting out of control. Okay? Just quickly, if you're ready to take control 291 00:18:07,078 --> 00:18:10,201 of your finances but feel stuck on where to start, I have a 292 00:18:10,241 --> 00:18:14,164 solution. My book, Money Buys Happiness, simplifies investing 293 00:18:14,285 --> 00:18:17,988 and wealth building with practical steps to help you achieve financial peace. 294 00:18:18,548 --> 00:18:21,852 Get your copy via the link in the show notes and let's get your money working for 295 00:18:21,912 --> 00:18:27,316 you. Now back to the episode. Number 296 00:18:27,336 --> 00:18:30,737 four, this is also what's happening at the same time. Do you see why 297 00:18:30,757 --> 00:18:34,039 the economy is in crisis? It's going to come home to roost. It 298 00:18:34,059 --> 00:18:37,280 ain't good. I personally think we should take the recession on the chin, 299 00:18:37,580 --> 00:18:40,942 stop immigrating people, shift our energy policy to nuclear 300 00:18:40,962 --> 00:18:44,603 so we can reduce energy costs because that inflates everything. And 301 00:18:44,703 --> 00:18:47,746 we need to stop bringing people in so we can just let the housing supply catch up a 302 00:18:47,766 --> 00:18:51,029 little bit. And of course, we need to increase interest rates, not bring them 303 00:18:51,089 --> 00:18:54,151 down, because we need to have the recession we need to have. We all need to take it on the 304 00:18:54,191 --> 00:18:57,414 chin and realize that this country cannot go through decades and decades of 305 00:18:57,454 --> 00:19:01,196 no recession. We need to have one. It's like when you have a bushfire, 306 00:19:01,216 --> 00:19:04,357 it's like, oh, it's beautiful and green and everything's going well. Well, sometimes you need a 307 00:19:04,417 --> 00:19:07,697 bushfire to come through and get rid of the foliage, okay? That's what we need. 308 00:19:07,737 --> 00:19:11,058 We haven't had one in this country for so long and they're preventing it and preventing it. They're kicking the 309 00:19:11,078 --> 00:19:14,218 can down the road and it's getting worse and worse and worse and worse. So 310 00:19:14,258 --> 00:19:17,419 when it really happens, it's going to be even worse. So occasionally you need a 311 00:19:17,459 --> 00:19:21,240 bushfire because you need these new roots to come through, right? Capitalism 312 00:19:21,360 --> 00:19:24,540 needs to have resets and we haven't had it because we're turning into a socialist economy, which we'll 313 00:19:24,560 --> 00:19:28,581 come to. Now, number four, inflation reality versus official 314 00:19:28,621 --> 00:19:32,287 figures. Now inflation is where the price 315 00:19:32,307 --> 00:19:35,510 of goods and services goes up. Rent, petrol, groceries, et cetera, right? 316 00:19:36,931 --> 00:19:40,574 So there's a, they're saying that 317 00:19:41,314 --> 00:19:46,218 inflation is at 2.4% 2025. Here's 318 00:19:46,238 --> 00:19:49,460 the problem I've got with that. If 319 00:19:49,500 --> 00:19:53,203 you go back, I would say, look, let's 320 00:19:53,263 --> 00:19:56,546 even go back five years. Yeah, 321 00:19:56,606 --> 00:20:01,222 five or six years, okay? A maxi bond, from, 322 00:20:01,722 --> 00:20:05,104 I'm calling it the Maxibon, the Maxibon Index, 323 00:20:06,144 --> 00:20:09,845 where I'm gonna, I measure, because I love Maxibons. Like I'll go to the BP, 324 00:20:09,905 --> 00:20:13,007 and if I want to like spoil myself with a dessert, my wife Alicia knows it's 325 00:20:13,027 --> 00:20:16,288 a Maxibon, okay? Because here's why, you get the best of both worlds. You 326 00:20:16,308 --> 00:20:19,609 get the nice creamy chocolate with the outside exterior, and you get the nice soft sandwich on 327 00:20:19,629 --> 00:20:22,930 the other side. It's a win-win, okay? You get a double hit, right? Inside 328 00:20:22,950 --> 00:20:26,532 tip. So I've got this Maxibon Index. I used to go in, get a Maxibon, it 329 00:20:26,552 --> 00:20:29,713 was $3.30 for a Maxibon. Fair, kind of annoying, but 330 00:20:29,773 --> 00:20:33,147 fair. Now, if inflation was at 2.3%, it would take, the 331 00:20:33,187 --> 00:20:42,603 rule of 72 suggests, if I take 72, divide by three. it'll 332 00:20:42,623 --> 00:20:46,146 tell me how long it takes for that maxi bond to double in price, okay, on 333 00:20:46,166 --> 00:20:51,470 inflation. So 72 divided by three would be around about 25, is 334 00:20:51,971 --> 00:20:55,253 that right? No, yeah, 24. Let's just go with 335 00:20:55,293 --> 00:20:58,516 24, okay? So you see 366, yeah, exactly 24, around the number. So 24, so 72 divided by 3% inflation rate equals 24 years. 336 00:21:08,985 --> 00:21:12,888 So, if inflation was really 3%, using 337 00:21:12,928 --> 00:21:16,190 the exact rule of 72, that is not even disputable, go 338 00:21:16,230 --> 00:21:20,033 and research it. I did an episode on it, go watch my episode, okay? It 339 00:21:20,073 --> 00:21:23,195 takes 24 years for the maxi bond to double in price. You 340 00:21:23,215 --> 00:21:26,398 with me? So, here are the facts. I went into 341 00:21:26,418 --> 00:21:29,780 the BP recently, and to my shock horror, I 342 00:21:29,820 --> 00:21:33,143 was disgusted to find out that my maxi bond at 343 00:21:33,183 --> 00:21:38,052 a BP service station was $6.60. It 344 00:21:38,092 --> 00:21:41,934 has doubled, not in 24 years as it should if inflation 3%, it 345 00:21:41,954 --> 00:21:46,516 has doubled in about five years. So 346 00:21:46,536 --> 00:21:50,077 we take the rule 72 divided by five years equals 347 00:21:51,358 --> 00:21:57,109 14%. Thanks Soph, 14%. So 348 00:21:57,189 --> 00:22:00,351 inflation, you're telling me it's 3%? I've got proof from my 349 00:22:00,411 --> 00:22:03,593 Maxibon index from the BP service station, that's full 350 00:22:03,613 --> 00:22:06,815 of BS. The inflation rate in the last five years has 351 00:22:06,855 --> 00:22:10,197 been about 14%. So if 352 00:22:10,237 --> 00:22:13,619 it feels like you are poorer, it's because you are. Because what's 353 00:22:13,679 --> 00:22:16,961 happening in this country is instead of increasing interest rates and having the recession we 354 00:22:16,981 --> 00:22:20,523 have to have, what they're doing is printing money 355 00:22:21,644 --> 00:22:25,006 Yes, to supply the money, because if 356 00:22:25,066 --> 00:22:28,569 bond yields are high, without going into much detail, and 357 00:22:28,609 --> 00:22:32,292 you want to re and you've got country debt, you want to refinance the debt, you 358 00:22:32,332 --> 00:22:35,494 don't want interest rates to be high, because then the country's got to pay more interest. So they 359 00:22:35,534 --> 00:22:38,676 like to artificially keep interest rates in the country low, they like to do it 360 00:22:38,696 --> 00:22:42,479 because it keeps the country's debt financing low. Okay. But 361 00:22:43,578 --> 00:22:47,239 The problem with that is that they print more money. They supply the country 362 00:22:47,259 --> 00:22:50,740 with more money. And people, they make money through banks, okay? And 363 00:22:50,960 --> 00:22:54,241 if people are borrowing more money to buy property, they're making more money. So they're printing 364 00:22:54,261 --> 00:22:57,662 more money. They're putting it out in circulation. In which case, we're 365 00:22:57,702 --> 00:23:01,083 inflating away our dollar. They're calling it the Pacific peso, the Australian dollar. 366 00:23:01,783 --> 00:23:04,985 And most countries are doing this with the fiat currency. That's why things like 367 00:23:05,145 --> 00:23:08,526 shitcoin and crypto are becoming more popular because people 368 00:23:08,566 --> 00:23:11,727 are trying to hedge themselves against this. If I was going to choose any 369 00:23:11,828 --> 00:23:15,109 hedge outside stocks, which I prefer, and outside even property, 370 00:23:15,149 --> 00:23:18,210 which is still better than the other two I'm going to 371 00:23:18,230 --> 00:23:21,452 mention, gold and crypto, that's why gold is becoming so popular. It's 372 00:23:21,552 --> 00:23:25,393 shot up because people are trying to hedge the inflation inflating 373 00:23:25,413 --> 00:23:29,045 away the currency. So the reality 374 00:23:29,065 --> 00:23:32,691 of inflation versus the official figures is absolutely completely different. 375 00:23:32,991 --> 00:23:38,738 So your $100,000 income used to be worth 100,005 years ago. Now fact, I think it's worth 50. So 376 00:23:38,778 --> 00:23:41,962 you've lost purchasing power of your dollar by 377 00:23:42,042 --> 00:23:45,946 up to, like it's fallen by 50%. How about 378 00:23:45,986 --> 00:23:50,610 that? In fact, it's 100% worse because 50,000 into 100,000 is 379 00:23:51,932 --> 00:23:55,335 100%. So if it feels like you're doubly poor, it's because you literally are. 380 00:23:56,056 --> 00:23:59,319 I'm bringing you this data from the field. This is not like something I'm making up. 381 00:24:00,060 --> 00:24:03,543 So five, superannuation tax changes. Now, what's happening is 382 00:24:04,144 --> 00:24:07,226 lately they've announced this superannuation change, the government, whereas if you've got a 383 00:24:07,286 --> 00:24:10,870 balance over $3 million, any capital gains associated with that particular 384 00:24:10,890 --> 00:24:14,333 portfolio of assets, you have to pay taxes for the year 385 00:24:14,853 --> 00:24:18,276 on unrealized capital gains. That means it's the capital gains 386 00:24:18,296 --> 00:24:22,099 you haven't realized yet, meaning you haven't sold the asset and realized the capital gain. So 387 00:24:22,119 --> 00:24:25,382 they're going to tax you on the unrealized gains, which is the most dumb, it's the most 388 00:24:25,543 --> 00:24:28,837 idiotic, stupid, dumbest thing that 389 00:24:28,857 --> 00:24:32,198 the government's ever done because you can't even have, we're going to force 390 00:24:32,238 --> 00:24:35,599 people who've got balances over 3 million to sell their commercial 391 00:24:35,639 --> 00:24:38,720 property just to pay you one year of tax. It's the dumbest thing ever. They're not 392 00:24:38,740 --> 00:24:42,261 going to be able to manage it. It's just going to be a nightmare. But because it's not indexed, 393 00:24:42,581 --> 00:24:45,882 it's not indexed, which means 3 million in 20 years is 394 00:24:45,902 --> 00:24:49,564 going to stay as is. So 3 million, because of inflation, 395 00:24:49,724 --> 00:24:53,025 everyone's going to have a superannuation balance of 3 million, which means the government's going 396 00:24:53,045 --> 00:24:57,386 to actually tax everyone's super eventually. 397 00:24:59,585 --> 00:25:03,306 They're coming after your money. We've got a Westminster system 398 00:25:03,326 --> 00:25:06,747 in this country, and it's not like America. People are like, oh yeah, free 399 00:25:06,787 --> 00:25:10,488 speech and home of the brave. It's not us. We're a convict nation. 400 00:25:11,028 --> 00:25:14,389 We are a nation of rule followers. And 401 00:25:14,429 --> 00:25:17,810 so we're like the proverbial frog in the pot that's getting boiled over time. 402 00:25:18,510 --> 00:25:21,911 And we're just taking it on the chin. There's no uprising here. But 403 00:25:22,672 --> 00:25:26,133 what's happening is, The liberal government in this country, meaning 404 00:25:26,413 --> 00:25:29,456 the LNP, the Labour, sorry, liberal, we got a different round in 405 00:25:29,476 --> 00:25:32,678 Australia. The Labour government, which is very liberal in its 406 00:25:32,898 --> 00:25:36,741 policy, it's got socialist style policy. And 407 00:25:36,761 --> 00:25:40,003 in fact, if you go back and you do enough digging, you find that 408 00:25:40,283 --> 00:25:43,465 the Prime Minister has even got some ties to communism. Without getting 409 00:25:43,485 --> 00:25:47,368 into detail. I feel like I'm on a Joe Rogan podcast here. But, What 410 00:25:47,408 --> 00:25:50,511 that means is he's more towards socialism, meaning take from 411 00:25:50,531 --> 00:25:53,954 the rich, give to the poor. But the problem with it is you're actually now 412 00:25:54,054 --> 00:25:57,257 making the poor depend on you. So what's happening is people are 413 00:25:57,277 --> 00:26:00,380 now becoming dependent on the government to save them, which is very bad for 414 00:26:00,400 --> 00:26:03,602 them long term. Because if you're in that place and you're depending on the government to save 415 00:26:03,622 --> 00:26:06,765 you, what's going to happen is they're going to tax, tax, tax and 416 00:26:06,805 --> 00:26:10,068 give, give. So they're taxing the productive people in the country and 417 00:26:10,088 --> 00:26:13,251 they're giving to the unproductive. Okay, and what's 418 00:26:13,291 --> 00:26:16,673 happened lately is things like NDIS, which I believe in, 419 00:26:16,813 --> 00:26:19,955 I like, I think we need, for people in this country who 420 00:26:20,015 --> 00:26:24,137 are really struggling, who have a disability that is absolutely life-altering, they 421 00:26:24,537 --> 00:26:27,859 should, we should have some sort of national support if we can afford it for 422 00:26:27,899 --> 00:26:31,001 them. But what's happened is, as soon as you show someone they can get 423 00:26:31,061 --> 00:26:34,583 money for nothing, people start to also accidentally be disabled. Now 424 00:26:34,723 --> 00:26:38,206 what, this is the facts. One in five people in Australia are 425 00:26:38,246 --> 00:26:41,809 now on the NDIS, which means one in five people 426 00:26:41,949 --> 00:26:45,473 are disabled. If you wind the clock back 10, 20 years, 427 00:26:45,813 --> 00:26:49,156 I bet it wasn't even close to that figure, but because they know there's free money on the table, 428 00:26:49,596 --> 00:26:52,819 show me the incentive and I'll show you the outcome. And now 429 00:26:52,839 --> 00:26:56,783 what's happening is we're now becoming even more unproductive because we're incentivizing 430 00:26:57,384 --> 00:27:02,153 poor behavior. We're incentivizing disablement. So 431 00:27:02,173 --> 00:27:05,535 if you wanna make money for free, go get disabled. Do anything in your power, mental health, 432 00:27:05,555 --> 00:27:08,857 whatever it is you can conjure up, go get some money from the government. Free money, that's 433 00:27:08,877 --> 00:27:12,559 what we're doing. This is shocking, right? So superannuation taxes 434 00:27:12,579 --> 00:27:15,721 have changed, NDIS, where they're taking the 435 00:27:15,761 --> 00:27:18,903 taxes they're raising is changing things, and it's getting worse and worse and 436 00:27:18,943 --> 00:27:22,485 worse. Number six, employment trends and productivity, right? 437 00:27:22,525 --> 00:27:27,146 Now check this out. Since 438 00:27:27,346 --> 00:27:30,748 August 2022, 72% of 439 00:27:30,888 --> 00:27:34,750 all jobs have been into the public sector. So 440 00:27:35,151 --> 00:27:38,993 130 of every thousand people now work for the government. And 441 00:27:39,073 --> 00:27:42,535 if this is a chart here, working in on state, okay, the chart here, 442 00:27:43,736 --> 00:27:48,001 it puts, check this out, it puts Australia at 443 00:27:48,021 --> 00:27:51,242 the amount of public sector workers per thousand people. And 444 00:27:51,262 --> 00:27:54,943 again, as I said, it's 130 and every thousand now works for the government. In 445 00:27:55,003 --> 00:27:58,104 Australia, it's the highest in 446 00:27:58,244 --> 00:28:02,165 almost any country in the world. In fact, Australia is at the top. More 447 00:28:02,185 --> 00:28:05,866 than Israel, Britain, France, Spain, United States, Brazil, Turkey, Argentina, 448 00:28:05,906 --> 00:28:09,207 Mexico, Thailand, et cetera. We are at the very top 449 00:28:09,227 --> 00:28:12,888 for how many people work for government. We are slowly becoming a 450 00:28:13,008 --> 00:28:16,833 government working country entirely. So 451 00:28:16,873 --> 00:28:20,479 we are moving towards a level of what would be considered 452 00:28:21,080 --> 00:28:24,447 communism. where you actually only 453 00:28:24,487 --> 00:28:27,708 work for the state. Last time I checked, didn't work out so good 454 00:28:27,728 --> 00:28:30,830 for North Korea. Now, what's interesting with China, it 455 00:28:30,870 --> 00:28:34,751 is communist driven, so it's state owned, but it's a capitalist society. 456 00:28:35,692 --> 00:28:38,873 I think personally, it's more capitalistic than us at this present time. 457 00:28:39,173 --> 00:28:42,275 Scary to think that. People are like, what happens if the Chinese invade? I'm 458 00:28:42,295 --> 00:28:45,376 like, well, they're doing a pretty good job running their country. It 459 00:28:45,416 --> 00:28:48,578 wouldn't be a bad thing. because they'd run this country better than what we 460 00:28:48,598 --> 00:28:51,760 do. Fact. Anyway, I love Australia. I'm not suggesting that, but 461 00:28:51,900 --> 00:28:55,142 you know, like I'm just annoyed, right? As you can tell. But the tonality of 462 00:28:55,162 --> 00:28:58,283 this episode, because I grew up in this country and it was, it's been a 463 00:28:58,323 --> 00:29:01,705 country of free, it's been a wonderful country, but now they're 464 00:29:01,745 --> 00:29:04,907 turning it into a dog's breakfast and I'm annoyed. That's why I'm 465 00:29:04,927 --> 00:29:08,929 doing this episode, to educate you on what's actually happening. This is crazy. Number seven. Energy 466 00:29:08,949 --> 00:29:12,411 and exports, this is mental. We actually are the 467 00:29:12,491 --> 00:29:16,213 richest country in the world, right? Check this out. Australia 468 00:29:16,314 --> 00:29:20,056 exports 35 times more gas than the 469 00:29:20,116 --> 00:29:24,018 shortage of gas projected in the 2030s. 470 00:29:25,479 --> 00:29:28,601 We've got projected average annual shortage of 471 00:29:28,661 --> 00:29:32,583 gas in this country. The 472 00:29:32,623 --> 00:29:37,262 projected shortfall is 2.3 megatons, is it? And 473 00:29:37,302 --> 00:29:40,984 we export 82 megatons. Like we're exporting 474 00:29:42,645 --> 00:29:49,429 35 times what our current national shortage is. 475 00:29:51,010 --> 00:29:54,472 What does someone say the other day? Just when you think Australian government can do nothing stupider, 476 00:29:54,672 --> 00:29:58,334 they do something stupider. And now this is because there's this 477 00:29:59,014 --> 00:30:02,156 narrative being pushed and it's been pushed from this 478 00:30:02,196 --> 00:30:05,364 thing called global warming. And they changed it 479 00:30:05,404 --> 00:30:09,905 to climate change. And it's a national, it's 480 00:30:09,945 --> 00:30:13,526 a global narrative. And what's happening now is they're discovering, recently 481 00:30:13,546 --> 00:30:16,707 they discovered there was new ice at the polar caps. And 482 00:30:16,727 --> 00:30:19,847 they're discovering that they said the water is gonna rise and 483 00:30:19,867 --> 00:30:23,028 there's now absolute, like if you go down to the water of all 484 00:30:23,068 --> 00:30:26,609 those places they said were gonna be underwater, they're not. So 485 00:30:26,649 --> 00:30:30,670 it's actually not real. This 486 00:30:30,710 --> 00:30:33,952 is made up. At some point, it might have been thought that 487 00:30:33,972 --> 00:30:37,095 that was happening, but now it's actually shown that it's 488 00:30:37,135 --> 00:30:40,979 probably happening. If it is happening, it's probably happening so slow that 489 00:30:41,019 --> 00:30:44,362 we can't even really see it, and it's not such a national or global 490 00:30:44,422 --> 00:30:48,206 tragedy. Now, the reason why that's a problem is because clean 491 00:30:48,266 --> 00:30:51,709 energy policies are now turning into a problem, because if it's wind 492 00:30:51,749 --> 00:30:55,111 energy, And it's certain energy 493 00:30:55,151 --> 00:30:58,351 that is not coal or nuclear. They call it 494 00:30:58,431 --> 00:31:01,892 clean energy. But the problem is it's actually making energy 495 00:31:01,932 --> 00:31:05,573 more expensive in this country, which means lately energy prices 496 00:31:05,593 --> 00:31:08,694 have gone up by 10%. So it's like, oh, I got hit with more energy costs. What the 497 00:31:08,714 --> 00:31:11,954 hell's going on? It's because the government is hell-bent on going to 498 00:31:12,034 --> 00:31:15,295 net zero, which is just a stupid policy. Look 499 00:31:15,675 --> 00:31:18,816 go and explore solar wind gag do it, 500 00:31:19,177 --> 00:31:23,098 but don't just go shit We're just gonna jump ship and stop supplying, you 501 00:31:23,118 --> 00:31:26,619 know Hydrocarbons as well. I mean you transition over 502 00:31:26,659 --> 00:31:30,120 time But this ridiculous time frame is it's now becoming 503 00:31:30,160 --> 00:31:33,641 not even really that important because we're not We're realizing we're 504 00:31:33,661 --> 00:31:36,843 not really cooking the planet as much as what we thought now how that 505 00:31:36,883 --> 00:31:40,245 impacts you is For a country that's 506 00:31:40,285 --> 00:31:43,433 got all this incredible abundance of 507 00:31:43,834 --> 00:31:47,182 resources, why are we paying $1,000 a quarter for energy? 508 00:31:48,220 --> 00:31:51,381 It was making our citizens poorer, okay? So that's the seven. I hope 509 00:31:51,401 --> 00:31:54,602 that makes sense. We're at a crossroads here, okay? We've 510 00:31:54,622 --> 00:31:57,883 got the Australian bond yield rising. They're trying to drop in. They just dropped interest rates 511 00:31:57,903 --> 00:32:01,364 the other day, again. But they need to put them up, not down. 512 00:32:01,985 --> 00:32:05,526 And I'm fairly certain we're gonna come to a cross road where we're 513 00:32:05,546 --> 00:32:08,827 gonna be forced to make these changes. And it's gonna be gnarly, right? 514 00:32:08,867 --> 00:32:12,028 Because we cannot continue with 13 times earnings for 515 00:32:12,068 --> 00:32:15,349 houses. Our kids are gonna suffer. The next generation, we're gonna leave. 516 00:32:15,369 --> 00:32:18,510 We're living in just a terrible place. We 517 00:32:18,551 --> 00:32:22,193 need to take some responsibility for it. Now, hopefully that happens. Well, last time I checked, I 518 00:32:22,253 --> 00:32:25,775 couldn't change government, nor am I trying to. Elon Musk just tried 519 00:32:25,815 --> 00:32:29,058 to change the government in the United States. He's finding that very hard. I'm not suggesting I 520 00:32:29,098 --> 00:32:32,480 can change government here, but what I'm wanting to do is just educate 521 00:32:32,500 --> 00:32:37,203 you a bit, because if you're feeling like things are getting a little bit worse for you, statistically 522 00:32:37,243 --> 00:32:40,285 they are, but that's not to get our free card. I 523 00:32:40,325 --> 00:32:43,947 don't want you to use that as an excuse. What I want you to do is 524 00:32:44,088 --> 00:32:48,050 understand, based on the facts that I've shared with you here today on this episode, is 525 00:32:48,090 --> 00:32:51,253 I want you to understand where you're at and I want you to understand what's coming and 526 00:32:51,273 --> 00:32:54,816 I want you to now take ownership of what you're going to do to 527 00:32:54,936 --> 00:32:58,439 increase your income, reduce your debt, take ownership 528 00:32:58,479 --> 00:33:01,541 of your family's future because if you depend on the government, I'm here to tell you 529 00:33:01,581 --> 00:33:04,884 it's just going to get worse and worse and worse until we 530 00:33:04,904 --> 00:33:08,227 get some sort of reasonable leadership, especially when there's more people coming and 531 00:33:08,247 --> 00:33:11,969 it's more competitive. So there's never been a more important time 532 00:33:12,409 --> 00:33:15,691 to get financially educated, start actually learning to increase 533 00:33:15,711 --> 00:33:18,972 your income, drop your debt, learn to invest. Because if you don't learn 534 00:33:18,992 --> 00:33:22,254 to invest in assets that hedge inflation, if you don't learn to do these things now, 535 00:33:22,274 --> 00:33:26,696 you're going to get inflated away. You're going to be off the 536 00:33:26,736 --> 00:33:30,057 list of people that can even afford to live in this country. And you may need 537 00:33:30,077 --> 00:33:33,479 to consider living in a place you don't even like. And I mean, 538 00:33:33,499 --> 00:33:36,660 you may even consider having to board with other families. I mean, this is going to get 539 00:33:36,740 --> 00:33:40,163 dire. So there's never been a more important time to 540 00:33:40,523 --> 00:33:44,407 educate yourself financially. So go check out our links in our YouTube. 541 00:33:45,047 --> 00:33:48,150 Go check out me on Instagram. Go and start beginning your education journey. Go and 542 00:33:48,170 --> 00:33:51,333 check out some other episodes, the next episode even, on the Money Goes on 543 00:33:51,353 --> 00:33:54,616 Trees video podcast on YouTube. Subscribe to the channel, share this with a friend, 544 00:33:55,056 --> 00:33:58,720 and start educating yourself and your kids on what's going to happen and what you should be doing to 545 00:33:58,780 --> 00:34:02,343 still, as best you can, dominate your own personal household 546 00:34:02,403 --> 00:34:05,746 finances. so that you're at least ahead of the game here when 547 00:34:05,786 --> 00:34:09,008 this country starts going down and down and down further and further. I hope it doesn't happen. You 548 00:34:09,028 --> 00:34:12,370 know what? I hope I'm wrong, right? I hope I'm 549 00:34:12,870 --> 00:34:16,173 wrong, but I'm not giving you personal opinion. All 550 00:34:16,213 --> 00:34:19,615 I'm sharing with you on this episode is data, okay? It's just data. 551 00:34:20,035 --> 00:34:23,298 And so you can take with it and do with it what you want, but I want to make sure this 552 00:34:23,358 --> 00:34:26,700 podcast gives you no BS approach to financial 553 00:34:26,720 --> 00:34:29,922 education and what's happening with your own finances. So I hope that 554 00:34:29,962 --> 00:34:33,025 makes sense. And if you've enjoyed the episode, if you have, share it with a friend and I'll see you 555 00:34:33,045 --> 00:34:36,187 in the next episode of the Money Grows on Trees podcast. Thanks for listening to 556 00:34:36,227 --> 00:34:39,530 Money Grows on Trees. If you enjoyed the episode, leave a five-star review 557 00:34:39,550 --> 00:34:42,673 on Apple Podcasts and Spotify and subscribe to 558 00:34:42,753 --> 00:34:46,195 us on YouTube so you never miss an episode. And if you're serious about building 559 00:34:46,256 --> 00:34:49,658 wealth, make sure to check out the links in the show notes and follow me on 560 00:34:49,838 --> 00:34:53,421 all social media platforms, at LloydJamesRoss for