About to be stimulated (what to do?)

[FZ6 Tas]

So the Prime Minister of Australia is about to stimulate me in the way of a $900 cheque. I am having a bit of anxiety in relation to spending this. I have a few things I would like to purchase, my wife want me to pay off some credit card but that's not what the money is intended for.

Here's my list:
Dyno tune for custom pc3 map $300
K and N air filter around $100
Sprocket change (want to know from you guys price and best option to go for)
Track Day just over $100
Gear upgrade (which could blow the lot easy)

I am really stuck cause I know I shouldn't spend the lot on my bike and the kids deserve something but I haven't had money to spend in quite some time.

What should I do? What's gunna make me feel like I have put it somewhere where I am going to gain the most benefit?

 

[aussiejules]

Well im putting half to tyres and then the other half in a account to spend on the house.

 

[FZ6 Tas]

Oh crap tyres, I forgot. I don't need any but I would like to get rid of the ****ty dunlop front and put a michelin road 2 on. What are you looking at getting?

 

[aussiejules]

michy pilot road 2's i got a guy doing them for $480 on bike.

 

[Capo79]

Are you guys saying you're gonna get 900 Aussie dollars in cash from your government, just like that??

Damn.... If that's true, I wouldn't invest in your currency any time soon...

 

[aussiejules]

yes our dumb arse priminister is hoping this will stop us going into a rescesion. If you have kids you already got 1000 per kid about a month ago and 1000 a few months before that.

 

[FZ6 Tas]

Every person who lodged a tax return and earned less than $100,000 a year YES.
I don't know that it's a bad thing, the country seems to be in better shape than many and our banks are doing a hell of a lot better than the european and the ones in the states.

 

[FZ6 Tas]

Just like to add that if everything does fail and the country falls in a heap that I didn't actually vote for K-Rudd because I was worried how labour would run the economy. But on the other hand if they are giving me cash I am gunna spend it and I am gunna spend it here and not buy **** from overseas or even mainland Australia.

 

[aussiejules]

The only problem is if it doesnt work when things turn around the country wont have any money to recover, we are going from a deficet to borrowing money from overseas to do this, i do hope it works, im going to enjoy spending my money. Keating tried a different way the last time we were in trouble and interest rates hit 20 percent, so this way so far is sweeter.

 

[Capo79]

yes our dumb arse priminister is hoping this will stop us going into a rescesion. If you have kids you already got 1000 per kid about a month ago and 1000 a few months before that.

Wow... Something tells me that your central bank is printing money pretty fast. I see inflation in the horizon, maybe even stagflation if the recession keeps going along with the inflation

Even so; I guess the market failure in Aus is due to decline in demand for various goods like pretty much everewhere else. Then it could be argued that this is a good countermeasure. It stimulates consumers, but still... It's significant amounts, and maybe too much.

 

[FZ6 Tas]

I was too young to remember that so I am probably naive in thinking that everything is gunna be fine. Has it hit hard over in SA cause down here it's like "What financial crisis". The amount of freight coming through our warehouse has increased if anything this year. Maybe we are too small to see the effect.

 

[Capo79]

The only problem is if it doesnt work when things turn around the country wont have any money to recover, we are going from a deficet to borrowing money from overseas to do this, i do hope it works, im going to enjoy spending my money. Keating tried a different way the last time we were in trouble and interest rates hit 20 percent, so this way so far is sweeter.

You see... 20% interest rates isn't that far fetched with this scenario either. There will be a significant increase in the amount of money. That will allmost certainly lead to higher prices throughout the whole range of sevices and goods after some time, and the price spiral is going. The most likely way with modern monetary policies one can stop or prevent that, is to increase the interest rates. I believe Australia has an inflation target, right?

 

[FZ6 Tas]

Inflation 3% I believe
Interest rates are at there lowest in many years but many banks aren't passing this on.

 

[keira]

yes our dumb arse priminister is hoping this will stop us going into a rescesion. If you have kids you already got 1000 per kid about a month ago and 1000 a few months before that.

It sure as heck didn't stop us from recessing...

When we got our stimulus, we took ourselves out to dinner and bought one thing we had been eyeing for a while, then put the rest toward debt, as we were house-hunting and needed to get some debt off our credit report. Not fun, but we got a little out of it and were practical with the rest.

I say split it between fun and responsibility.

 

[aussiejules]

Keating called it the recession we had to have, we needed to slow the economy down so interest rates went up and up it didnt slow so they went up and up, then they couldnt stop it and they kept going up and up. He started the ball rolling and couldnt stop it, we needed something but it grew. The priminister this time is trying a different tact that i hope works if ti doesnt this country could be in real trouble. Over here we seem to be very conservitive so when trouble strikes it makes it even harder to make money. In my industry (motor), we get hit twice because there is no inspections when hard times hit, people totally stop spending money on cars, causit doesnt matter. I dont know if you ever herd that most things are trialed here in south oz, and if they work then theey know iit will work every where in the country.(that includes junk foods and the such) we are a very fickle state.

 

[Humperdinkel]

yes our dumb arse priminister is hoping this will stop us going into a rescesion. If you have kids you already got 1000 per kid about a month ago and 1000 a few months before that.

LOL , the Milkybar Kid ummmmm sorry primeminster KRudd obviously didnt get the news today that we are officially in a recession

 

[dako81]

Money is money. Pay off your bills. Buy toys later.

 

[Capo79]

Inflation 3% I believe
Interest rates are at there lowest in many years but many banks aren't passing this on.

Sorry that I couldn't reply until now. Had to reach my flight to denmark this afternoon. Speaking of which: I read news on the airport express train that Australia now officially is in a recession. Talking about a coinsidence, right?

Sure, you have low interest rates at the moment, but that is the product of the recession itself. I'm talking 5-6 years from now. My qualified guess is a much higher interest rate. Higher than it otherwise would have been if the last "package" you guys are talking about, never would have been implemented.

Still, I hope your government has thought this one over real good. Thing is, when you literally throw money to the people, they won't behave as intended. In this case, it's primarily to increase the availability of money and in turn as if to kickstart the economy. Problem is, that this addition of cash in a large part will be saved either by being put in a bank account or by paying debts. Let's say only 50% of those 9 grands are being spent, the rest is being saved for later. And that later is the problem. Suddenly people's behaviour is changing, and they start spending. Maybe even at a time when the economy is booming again, and another bubble is emerging.

One of the countermeasures that politicians are talking about in Norway, is to reduce the VAT. That will have a DIRECT consequence on the demand for goods and services. A much better idea IMO than printing blls and then throw them out the window. But we'll see!

 

[MarinaFazer]

gear. But also suspension is what you've forgotten...not Ohlins, but some of the other stuff...HyperPro, Race Tech...not too expensive to do yourself.

But my vote is for the credit cards first...paying the people you owe should come before anything else...unless you get government bailout like big banks when you lose billions in the US economy. I deserve 4 billion too!

 

[FZ6 Tas]

Sorry that I couldn't reply until now. Had to reach my flight to denmark this afternoon. Speaking of which: I read news on the airport express train that Australia now officially is in a recession. Talking about a coinsidence, right?

Sure, you have low interest rates at the moment, but that is the product of the recession itself. I'm talking 5-6 years from now. My qualified guess is a much higher interest rate. Higher than it otherwise would have been if the last "package" you guys are talking about, never would have been implemented.

Still, I hope your government has thought this one over real good. Thing is, when you literally throw money to the people, they won't behave as intended. In this case, it's primarily to increase the availability of money and in turn as if to kickstart the economy. Problem is, that this addition of cash in a large part will be saved either by being put in a bank account or by paying debts. Let's say only 50% of those 9 grands are being spent, the rest is being saved for later. And that later is the problem. Suddenly people's behaviour is changing, and they start spending. Maybe even at a time when the economy is booming again, and another bubble is emerging.

One of the countermeasures that politicians are talking about in Norway, is to reduce the VAT. That will have a DIRECT consequence on the demand for goods and services. A much better idea IMO than printing blls and then throw them out the window. But we'll see!

I agree with everything you are saying capo and I am sure you know more than I do about this subject, but I will add that I don't care whether I had received the stimulus or not but since I did I am going to spend a majority of it the way it was intended and pay off some bills as well which will have the same effect as I will have extra cash to spend on those services again.

I don't wish to defend the people that run our economy but in the same package the government have announced alot of infrastructure spending too to help curb the effect of the crisis too. God knows if this will help but I can only do my bit and spend spend spend.

Oh I just noticed it's $900 (9 hundred) not 9 grand, that would be orsm.