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Do all bubbles burst?
Topic Started: 2 Aug 2014, 07:07 AM (3,282 Views)
jesusjones
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I don't know much about economics and
I am trying to learn ie. do all bubbles burst?


http://forumblog.org/2013/07/do-all-economic-bubbles-burst/
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roberto
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I can't think of any from 60 or 80 years ago that are still inflating myself? The longest running one at the moment would be the debt bubble that began after the collapse of the brenton woods agreement. It kicked off in the 1970's and the chart of global debt since then looks like a Nasa space launch.

The term bubble was aptly chosen I think. All bubbles do indeed burst spectacularly.
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stinkbug
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roberto
2 Aug 2014, 07:25 AM


The term bubble was aptly chosen I think. All bubbles do indeed burst spectacularly.
I agree. I think bubbles burst as well, that's why they're bubbles.
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While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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newjez
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stinkbug
2 Aug 2014, 08:01 AM
I agree. I think bubbles burst as well, that's why they're bubbles.
What about the diamond bubble?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Jimbo
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jesusjones
2 Aug 2014, 07:07 AM
I don't know much about economics and
I am trying to learn ie. do all bubbles burst?


http://forumblog.org/2013/07/do-all-economic-bubbles-burst/
Yes they all burst but they are not classed as bubbles until after they have burst.
Some may say that Aussie property is in a bubble and just as many argue that it is not.
It will be recognised by all as a bubble after it bursts (if it bursts).
The roofer putting slates on a roof in a new Dublin suburb was working in a booming market one minute only to be sacked the next time he came down the ladder because the Celtic Tiger had rolled over and died.
Gold was going to $5000 an ounce until it reached just shy of $2000 and took a nosedive.
Dot Coms were going to make everybody rich until they didn't.
UK property was going to crash in 2003 after 4 years of spectacular growth. It grew just as spectacularly until 2007.

Defining a potential bubble is an inexact science (if it is a science at all). A market may appear to be in a bubble when all the criteria that defined prior (burst) bubbles are met, but it may just carry on rising regardless with no big bang.

I am only 100% convinced of the existence of one real bubble and that is the worldwide debt bubble. I am certain that we are in for a major currency crisis in the not too distant future. It will wipe out pensions, savings and change our way of life forever.
We can thank the Yanks for that one. The whole world Fiat currency system is nothing but a Ponzi scheme.



Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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ThePauk
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Jumbo
Interested to know what you think more about about he Gloabl currency wars on at the moment and how it will play out?
Edited by ThePauk, 2 Aug 2014, 04:17 PM.
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Jimbo
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ThePauk
2 Aug 2014, 04:17 PM
Jumbo
Interested to know what you think more about about he Gloabl currency wars on at the moment and how it will play out?
Jumbo?
I was working in China last year and you see how the petrodollar system works first hand.
Chinese workers slaving away for 14 hour days in crap conditions for low pay so that fat American unemployed people can buy cheap TV's and clothes.
The reason the yanks get away with it is because we all have to trade internationally with the US Dollar. So we hoard US Dollars in reserve so that we can buy oil and just about everything else we need. This allows the Yanks to operate a Ponzi scheme where their biggest export is Fiat currency. They can borrow money and pay people to sit around on their fat arses all day watching cable TV and eating KFC.

Not everybody likes this arrangement with China and Russia being prime examples. So they are starting to trade bilaterally bypassing the USD. Iraq tried to get away from the petrodollar Ponzi but the Yanks invented some WMD's and hung Saddam by the neck. Gaddafi got a knife up his arse. They won't be able to do that with Putin or Li Keqiang.

It is just a matter of time for the USD. Every new bilateral agreement weakens US hegemony a little bit more.

The Ukraine MH17 episode may be the end game. The US attempts at sanctions against Putin are pretty much doomed to fail. Russia supplies nearly 40% of Europes gas and and oil. Europe soon chickened out of Syria and left Obama with egg on his face when Putin flexed his arm last year.

Of course, when the USD dies a death, so do our pensions and other Ponzi related promises such as aged care etc.




Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Foxy
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Zero is coming...

just ask yourself, did the Roman Empire burst??
if it can, anything can.

peter
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ThePauk
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Just what my iPad auto correction does to Jimbo.

Mmmm... a wide petrodollar view of the home planet noted.

So US dollar loses the currency? You say it is only a matter of time.
So a bond crisis or a currency crisis?

Noted you also stated that not all bubbles have to burst. By this do you mean some can slowly deflate, like the Japanese bubble?
Edited by ThePauk, 3 Aug 2014, 08:38 AM.
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goldbug
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stinkbug
2 Aug 2014, 08:01 AM
roberto
2 Aug 2014, 07:25 AM


The term bubble was aptly chosen I think. All bubbles do indeed burst spectacularly.
I agree. I think bubbles burst as well, that's why they're bubbles.
So do you think the government worker bubble is popping in canberra? Are they going through with all those mass layoffs they had in the pipeline. Must be some reason why rental prices and sale prices are falling.
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
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