Here in Australia and in the state of NSW, at least grey-hound racing is being stopped and outlawed. They call it a banning of a sport! Lots of people are up in arms about it and claim it is a livelihood for them. However, the livelihood is the betting of money. It is the same with horses and racing. Take away the gambling part and no one would give horse-racing a second look. People could well end up eating horses instead of racing them around.
We all will be lucky to get out of this mess alive. We are stocking up on cabbages and sauerkraut.
The financial tectonic plates are rumbling,scrambling yet again. The US treasure notes pared early gains. The thirty year rate dropped from 1,099% to 1.007% when news got around that Turkey is having a coup. Two bridges across the Bosporus have been closed to incoming traffic and Turkish Pide stall holders are nervously looking over their shoulders. They are getting ready for a run by the public on food items, especially yoghurt.
The German bund rate was just about getting back into the positive territory again, when first Nice and now Turkey shemozzle, it went back in giving investors a mouth-watering negative return.
Our Australian pension is means tested and subject to ‘deeming.’ It meant, when applying for the old-age pension the first time, we had to empty our pockets and show our savings accounts. We are supposed to inform the government whenever our financial situation changes. Even the value of our car and furniture is taken into account in determining the fortnightly pension. The total amount is ‘deemed’ to earn an interest which is then used to lower the pension accordingly. An exemption is the value of our house. We are allowed to have a house.
However, the deeming rate set by the Government is getting tricky. Interest earned on savings is almost zero and getting lower. It will be interesting to see when banks in Australia will be giving negative rates on savings. It is already happening in Japan, Switzerland and Germany. Can one imagine paying the banks to keep our savings? Will the Government in deeming and ‘mean’testing of pensioners increase our pensions proportionally? After all, if interest earned lowers the pension, interest paid out ought to then result in getting compensated as well.
It is a complicated world. Who would have thought people are now investing in negative returns. Some are now shifting money into gold, works of art or old furniture. There are nervous hordes of financiers roaming the world, shifting currencies and doing their well practiced dodgy deals again. Of course, during a real crisis, food is what really counts. This is why we are keenly eyeing the food supply. Did you know that the red pickled cabbage sold out within the first day it appeared here in Bowral’s Aldi? We went back yesterday hoping to buy some more but it was all sold out. We bought the last few jars of sauerkraut.
Even so, the sun is out and Milo is on his favourite cushion. He occasionally looks at us, tries to stir us into getting dressed to go for our daily walk.
All is well in this household.