Oh, and one more thing. Just as loans create money, so do defaults destroy money. The only way to avoid defaults in a debt-deflationary environment is to zero interest rates and turn your borrowers and banks into zombies.
Speak when you are angry and you will make the best speech you will ever regret. Ambrose Bierce
Oh, and one more thing. Just as loans create money, so do defaults destroy money. The only way to avoid defaults in a debt-deflationary environment is to zero interest rates and turn your borrowers and banks into zombies.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
Oh, and one more thing. Just as loans create money, so do defaults destroy money. The only way to avoid defaults in a debt-deflationary environment is to zero interest rates and turn your borrowers and banks into zombies.
Defaults? What defaults? Borrowers are on cream at the moment.
Take risks - if you win you will become wealthy, if you lose you will become wise
OK, so you're predicting deflation of at least 2% per annum. And rate cuts cause deflation now, is that it?
Where did you 'learn' this... ZeroHedge or Macrobusiness?
I have been predicting deflation for a few years now, and had you silly debt dealing property speculators screaming .no way we'd get to zirp.
When your economy is terminal, and doesn't produce anything that employs the majority of people, and all you can do is sell each other things, such as nasty stuff from China, or ever increasingly priced houses, the economy cannot improve.
These rba blokes just got to sit on their twiddly fingers and hope we can get some income by getting back to doing the only thing left open to us as a third world nation.
Scratching around in the dust.
In the meantime, every cent house values goe up is another nail in our economic coffin.
You should get another mortgage.
Khaderbhai
18 Oct 2016, 11:36 PM
Awesome... can't wait!
I'll paraphrase my last comment:
Phillip Lowe, flat out directing Australia's National economy
Reserve Bank governor Philip Lowe says rate cuts could be needed to fight low inflation LINK
New Reserve Bank governor Philip Lowe has held out hope of further interest rate cuts, saying he needs to guard against inflation expectations falling too far. In his first speech since taking over from Glenn Stevens as governor in September, Dr Lowe said each of the bank's two rate cuts this year were in response to lower than expected inflation.
Philip Lowe noted that he is the first governor to have taken office "where the concern of the day is more that inflation might turn out to be a bit too low rather than a bit too high".
"The easing in policy was not in response to concerns about economic growth," he said. "If anything, the growth outcomes over the past year, as measured by real GDP or the trend in unemployment, have been a bit better than expected." The headline inflation rate is currently 1 per cent, well below the RBA's medium-term target band of 2 to 3 per cent. Over the next two years, it should pick up, although to something "closer to 2 per cent than 3 per cent".
But if it turned down and expectations turned down, there would be a case for cutting rates to bring them back up.
"I am the first governor to have taken office where the concern of the day is more that inflation might turn out to be a bit too low rather than a bit too high," he told the Citi fund managers conference on Tuesday morning.
Oh,
So the reserve bank has caught up with Foxbats call that the prices of everything will come under pressure???
I have been predicting deflation for a few years now, and had you silly debt dealing property speculators screaming .no way we'd get to zirp.
When your economy is terminal, and doesn't produce anything that employs the majority of people, and all you can do is sell each other things, such as nasty stuff from China, or ever increasingly priced houses, the economy cannot improve.
These rba blokes just got to sit on their twiddly fingers and hope we can get some income by getting back to doing the only thing left open to us as a third world nation.
Scratching around in the dust.
In the meantime, every cent house values goe up is another nail in our economic coffin.
You should get another mortgage.
I'll paraphrase my last comment:
Phillip Lowe, flat out directing Australia's National economy
Yes totally absurd, i have invested all my life, i can find nothing that i can say, yes that can show me a yield.
I can live on yield.
I can not live on capital gains.
Not really.
Steady yield on assets make people rich over time.
Capital gains??
But who do you sell to in the end??
It is all about the net yield at the end of the day.
When i was a boy i could get yield on my money in the bank.
Now if i was to replace my income purely on bank interest i would need, $35,000,000 in cash in the bank??
Wow.
How many Australians can put $35,000,000 in the bank?
I know i can not.
So the true value of something in business is what someone else will pay your for it.
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