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Re: Rising interest rates … what will this do to the economy?

Posted: Wed Feb 27, 2008 8:01 pm
by AtD
The Carabinieri wrote:This is some what true ... In tearms of a recession, i heard some economist on TV stating that in 2009, the possibility of having one, is very much alive.
Perhaps. I'm not going to claim I have a crystal ball, but it's important to take the 'experts opinion' with a grain of salt. The main threat I see for the Australian economy is offshore. With mining pushing our dollar up, and the global market hurting our export partners, it's going to be interesting at least.
The Carabinieri wrote:As much as Rising interest rates are a sign of a growing economy, the thing to take note, is that we need to stop our spending, simply for the fact that if something were to happen, most people would be very much in trouble.

The other thing to take note, is that what goes up (especially what goes up very fast) normally comes crashing down.
Very true, markets often 'overshoot' the mark (especially speculative ones).
The Carabinieri wrote:I think the RBA f*&%$% up by not increasing rates by .50 or maybe even .75 around a year ago ... this would have sent the msg loud and clear.

Hopefully this makes sence, as i am very tired today.
Hindsight is always wonderful. :)
The Carabinieri wrote:The other thing i want to know, is where everyone is getting the money from??? It seems that when real estate was cheap (around 10 yrs ago), no one was buying, and now that its been sky rocketing (with many people possibly paying even too much) it seems that people have plenty of money to spend.
Debt, yes. Partially foreign investment, partially superannuation funds. Compulsory super has helped a lot.

Re: Rising interest rates … what will this do to the economy?

Posted: Wed Feb 27, 2008 8:15 pm
by AG
The current spate of inflation isn't simply resulting from excessive demand and consumption. There's other factors such as high job vacancies resulting from worker shortages driving up wages and therefore production costs, and infrastructure constraints restricting the country's export capacity for goods such as minerals.

Re: Rising interest rates … what will this do to the economy?

Posted: Fri Feb 29, 2008 12:19 pm
by The Carabinieri
The other thing to look at, is land tax ... which is set to go through the roof for many people. 2009 is looking very scary for all of australia.


Posted: Fri Aug 22, 2008 3:48 pm
by skyliner

Further to the report on SA in the AFR in May

Mitsubishi may have closed it's factory doors but SA has always been far more than it's still active car industry. The state government has brushed of that closure as well as increased interest rates, a shakey sharemarket, and small recuction in consumer confidence to post solid gains. The mining industry continues to be a mainstay, and as always there are plenty of innovative companies winning contracts in IT and green technologies.




Posted: Fri Aug 22, 2008 3:53 pm
by Howie
Thanks for the headsup mate! How'd you find that?


Posted: Fri Aug 22, 2008 4:25 pm
by skyliner
I am a regular reader of the AFR due to greater credibility in finance, buildling, real astate etc than most papers. Many times there are comments on or articles related to SA. It also gives our position relative to the other states.

You also might have forgotten - I have an avid interest in Adelaide/SA (though up here in Bris) and so scouring for SA/adelaide info is a must.



Posted: Wed Aug 27, 2008 4:11 pm
by rhino
skyliner wrote:I am a regular reader of the AFR due to greater credibility in finance, buildling, real astate etc than most papers.
Yes, the AFR is my paper of choice too, for the same reasons.


Posted: Wed Aug 27, 2008 6:41 pm
by Wayno
rhino wrote:
skyliner wrote:I am a regular reader of the AFR due to greater credibility in finance, buildling, real astate etc than most papers.
Yes, the AFR is my paper of choice too, for the same reasons.
i'd love the AFR to partner with the Independent Weekly and create a Adelaide-specific insert (4-6 pages) each day. Would be sooo good. Both have quality journalism...


Posted: Sat Sep 06, 2008 10:38 am
by skyliner
Look forward to it on the 18th mate!



Posted: Sat Sep 13, 2008 4:14 pm
by skyliner
Will be in hospital for an eye operation on the 18th. Can someone get the AFR and put on the relevant gear to this site please. My apologies guys!



Posted: Thu Sep 18, 2008 11:23 am
by Wayno
Don't forget to but the AFR today ($3) for the SA Special Report!

You can probably claim the newspaper as a tax deducation as well :) - presuming you have direct share investments, or sometimes move your superannuation between portfolios...


Posted: Sat Sep 20, 2008 12:31 pm
by skyliner
Well guess what! I got it anyway, despite being in hospital. My computer will not do the deed of getting the info here, but a rough outline follows (actually quite a short feature - 3 pages)

KEY TITLES - SA Earns It's Stripes As Defence Epicentre.
Mining Still The Standout Among Other Flyers.
Olympic Gold Winning Potential In SA Minerals.

SA Earns It's Stripes As Defence Centre
A quick look through the current public Defence Capability Plan highlights the considerable amount of work that Sa firms may be involved in. In the next decade there is at least $30bn worth of work where some SA involvement will be expected.

The start of the Collin's class submarine project in 1991 helped focus attention on Sa's already substantial electronic and defence industries, with key facilities icluding the Defence Science and Technology Organisation (DSTO) at Salsbury.

But that was just the start of a defence shopping list that now has over $14bn of new defence and security projects coming on line, including the nation's largest ever defence contract, the $9.5bn Air Warfare Destroyer contract. In addition there is a 10 year $1bn to maintain and upgrade the AP-3C Orion aircraft fleet, a multi-billion dollar 15 year contract Collins class submarine through life support project and a $1bn 12 cyear coastwatch surveillance project. Adelaide will soon to home to Australia's new Mechanised Battalion Group of 1200 soldiers , with construction of more than $650m in capital facilities to start this year.

Construction of the $400m Techport willl create Sa's third major defence precinct ...

....New defence force projects on the drawing board, including Land 400, the multi billion dollar replacement of the M113 and ASLAVs military vehicles, Air 7000 phase 2B maritime patrol aircraft, air 6000 to provide new air combat capability and the 'future submarine' project ....



Posted: Sat Sep 20, 2008 7:11 pm
by Norman
I'll have to grab it at Uni next week.

News & Discussion: South Australian Economy

Posted: Thu Dec 09, 2010 12:32 am
by AG
Critics, eat crow: South Australia's star continues to rise

* HOTSPOTTING: Terry Ryder
* From: The Australian
* December 09, 2010 12:00AM

I'M LOSING the ability to be stunned by big numbers attached to resources and infrastructure developments in the two big resources states.

Another multi-billion-dollar iron ore project in Western Australia? Another consortium spending megabillions to extract gas and pipe it halfway across the continent to process it on the coast of Queensland? Ho hum.

I am, however, still capable of being amazed by the emergence of South Australia as a serious player on the national economic stage. After a career of bit parts and cameo roles, SA is now becoming a major talent.

A recent NAB report ranked SA's economy as the nation's second-best performer in the 2010 financial year -- and its star continues to rise.

I've been reading the SA Major Developments Directory for fiscal 2011, listing projects under way or committed, which total $80 billion. Premier Mike Rann says: "One of the key reasons for our economic resilience has been the size and scale of projects on the horizon and the diversity of the industries they involve."

The key word is diversity.

Many among Australia's gaggle of computer-screen economists have made the mistake of marking down SA as a performer of note because traditional industries such as manufacturing have waned.

They have overlooked the emergence of new elements in the SA repertoire, including defence, resources and education.

Rann recently opened SA's 12th operating mine, the Cairn Hill operation near Coober Pedy, and its 13th, OneSteel's Iron Chieftain mine near Whyalla.

At Whyalla, the regional city I discussed in Primespace last week, Rann says 30 more mines are in various stages of planning.

Unlike WA and Queensland, where most of the resources action is a long way from major population centres, much of SA's mining action is within striking distance of coastal regional centres such as Port Lincoln, Whyalla, Port Augusta, Ceduna and Port Pirie, as well as the capital, Adelaide.

It suggests we can expect direct impact on real estate markets in those locations.

Projects include a $3.5bn coal-to-liquids plant and power station near Coober Pedy, the $3bn Clinton coal-to-liquids plant near Adelaide, the $2.5bn FuturGas project near Kingston in the southeast, Arafura Resources' $1bn rare earths complex at Whyalla, the $800 million Torrens Island power station expansion and the $750m Cherokee power station near Murray Bridge.

Also drawing nearer to construction is BHP Billiton's expansion of Olympic Dam, which has some of the world's largest deposits of copper, gold and uranium.

The project cost is likely to be at least $15bn, with direct impacts on Adelaide and Whyalla, as well as Roxby Downs.

The dark horse of the SA resources story is the plan to open up the Woomera defence precinct to mining, given that it is considered to contain most of the nation's copper and uranium, with resources worth more than $35bn.

SA's minerals and energy industry goes beyond mining, with growing importance in alternative energy generation.

"The best scientific evidence suggests our state's below-ground resources include vast amounts of the hot rocks that offer potential for generating geothermal energy, adding to our wind power generation capacity which is more than 50 per cent of the national capacity," Rann says.

On the list of upcoming projects, the Barn Hill, Lincoln Gap, Mt Bryan, Snowtown, Waterloo, The Bluff and Elliston wind farms involve investment totalling $2.4bn.

Rann can justifiably claim that SA has established itself as "Australia's defence state" with the $8bn Air Warfare Destroyer contract and the $1bn Orion aircraft maintenance contract, as well as the multi-billion-dollar support contract for Collins-class submarines.

There is also the $500m relocation of a major defence unit from interstate to the Edinburgh facility in Adelaide, with 1200 troops to arrive next year.

It's curious that Adelaide seems to have more infrastructure development happening than does Sydney. I'm not sure whether that's a credit to the SA government or an indictment of its NSW counterpart.

Adelaide has a tendency to actually deliver its infrastructure projects, whereas in Sydney they make grand announcements, later scrap the billion-dollar proposal and then change premier.

In Adelaide, the newly-opened Northern Expressway ($565m) is soon to be joined by the upgrade of the Southern Expressway ($450m) and the South Road Superway ($850m).

The Rail Revitalisation project, which includes electrification of existing lines, is costing about $1.2bn. The Seaford Rail Line project is an extra $300m.

There's also the Adelaide Desalination Plant ($1.8bn), the Adelaide Oval redevelopment ($535m), the Riverbank Precinct Development ($400m), further stages of the Lyell McEwin Hospital upgrade ($200m), stage two of the Queen Elizabeth Hospital upgrade ($130m) and the new Royal Adelaide Hospital ($1.7bn).

While the Australian real estate industry is echoing with developer cries of under-supply, there's no shortage of development land around Adelaide.

Residential developments include the Bowden Urban Village ($750m), the Buckland Park master-planned community ($2bn), the Lightsview project ($375m), the Playford Alive urban renewal project ($1bn), the Seaford Heights and Seaford Meadows master-planned communities ($1bn), Delfin Lend Lease's 400ha community at Gawler East and the Waterview master-planned suburb in the city's north ($4bn).

Terry Ryder is the founder of

Re: #Article: South Australia's star continues to rise

Posted: Thu Dec 09, 2010 8:47 am
by rhino
A good read. So much for "Nothing ever happens in Adelaide"!