I’m curious how long central bankers will let this go on for before they begrudgingly admit that they got it wrong. For the sake of those already made homeless, ill or dead from the current inflation I hope the central banks aren’t wrong so that their suffering wasn’t for nothing.
Boomers and inflation
I hate to say it, but, it’s the boomers I’m sure. Again.
I’m travelling Australia and working. I’m Gen X. It’s a slog, but enjoyable and a chance of a lifetime.
Our house at home has a massive mortgage and we’re renting it out. We run at a loss on our house, as we can’t socially justify renting it at the rate it would take to break even. So we take the loss.
But, interest rates are rising. They keep going up. People are still spending. Who are these people?
It’s the boomers.
On this trip I see boomer after boomer in $120K + tow vehicle, with $150k + caravan. Kitted out with everything you can imagine. Spending like crazy, and I mean like crazy, on whatever they want. Fishing rods, fishing gear, the BEST tyres for their vehicles, suspension upgrades that I can’t imagine the cost of. Meals and cafe’s every bloody day. I see them sipping their latte’s and eating carrot cake, spending $60 to $80 a night on van parks and in a discussion with one, he told me he thought even $90 a night was good value. Unbelievable. They eat at restaurants all the time and have the best of everything.
It’s… the… BOOMERS. I hate to say it, it’s like some haunting htat never stops, but it’s true.
They have NO mortgage. The rates don’t impact them one bit. Their extra rental properties are bringing them in more than they could have dreamed and the rest of us are getting these bogus interest rate rises, as if that will fix the problem.
None of us, or very few of us, can spend like the boomers can, and are.
Now, I have had them say to me “oh, we worked hard, we didn’t complain like your generation” and “we drove clapped out cars, and we finally made it”, etc. Now that is fine, good on them, but it doesn’t change the fact of what is driving this inflation.
I read that about 25,000 new caravans a year are being sold in Australia. Add that many dodge rams and other large tow vehicles, then all the gear that goes with them. It’s insane.
/rant over