What you are saying supports the point b_b is making. Government spending has allowed the private sector to deleverage in Japan. Similar in the USA but not nearly to the same extent. Not at all, it says that with a growing population via immigration the demand for new housing will continue to be strong, and if supply doesn't meet demand prices will go up as the people with the ability to pay more will secure the available housing for their needs rather than go without.
"Allowed it to happen?" Not at all, the govt and BOJ did their utmost to prevent it from happening. Furthermore, opening the doors to immigration would not have prevented it without the govt implementing price freezes. Suggesting that govts have the "power" to prevent debt deleveraging is nonsense. It's akin to suggesting that govts create bubbles that cannot burst (essentially create money trees).
"Allowed it to happen?" Not at all, the govt and BOJ did their utmost to prevent it from happening. Furthermore, opening the doors to immigration would not have prevented it without the govt implementing price freezes. Suggesting that govts have the "power" to prevent debt deleveraging is nonsense. It's akin to suggesting that govts create bubbles that cannot burst (essentially create money trees).
I don't see any reason why the government wouldn't have wanted the private sector to reduce their debts, in fact I would be certain that is what they wanted.
Take risks - if you win you will become wealthy, if you lose you will become wise
Well that suggests that "countries with immigration" are immune from asset bubbles and debt deleveraging. From economic history, we know that's nonsense.
Tha US is lookin' good agin Tezza.
Wheels turn - Unless ya a joint like Japan wot's got a declining population maybe?
Hmmm - On that basis, I'm not overly excited by Russia's prospects either - But shit, they do at least have HUGE natural resource reserves. Plus a REALLY weird (ta tha point of bein' 'magnificent' even [?] almost inbred [?] national psyche wot almost seems ta naturally predispose 'em ta takin' pride in tha thought that wotever adversity life can chuck their way, they are more than capable of toughing it thru - Which just results in 'em doin' stuff like tellin' tha rest of tha world We don't actually give a rat's about ya sanctions 'n will continue ta do things our way regardless; So up yours."
So I suspects they continue ta be quietly confident in their national future regardless.
Tho I can imagine tha Japs just might be continuing ta feel a bit shaky?
I have taken lots so far from the group and learnt a few things. I have also changed some of my view points after conceding what are logical explanations. You simply don't make any sense to me and I have tried to illustrate why to no effect. All you keep doing is referring me to previous posts (which I have already and repeatedly expressed that I don't feel addresses my question) or perhaps you have explained it in a way that I personally find it hard to follow your point. In any case if you would like to try and explain trying a different method? If not that's fine and perhaps you may find contentment conversing with someone else.
Ok - so this is what I wrote
Quote:
Someone with a loan does work for someone that has a deposit. The wages are paid, and the deposit and loan offset each other. Aggregate debt falls, yet GDP grows (from the labour).
What part of that do you not get?
Rufus
6 Jan 2017, 12:32 PM
What you are saying supports the point b_b is making. Government spending has allowed the private sector to deleverage in Japan. Similar in the USA but not nearly to the same extent.
Yes - “Terry” does that a lot. Very successful at supporting my points and arguing against himself.
What part of that do you not get? Yes - “Terry” does that a lot. Very successful at supporting my points and arguing against himself.
Still think he is not a sock?
My question is how can the WORLD economy expand without increasing the amount of currency? But still you refer me to an absolutely dumb analogy about little Jimmy earning a wage. ONCE AGAIN DO YOU HAVE A REASONABLE WAY GLOBAL GLOBAL GROWTH CAN BE ACHIEVED WITHOUT CREATING MORE MONEY? Don't refer me to a previous post!
I don't see any reason why the government wouldn't have wanted the private sector to reduce their debts, in fact I would be certain that is what they wanted.
Well you understand little about the Japan bubble experience then. Plenty of literature out there if you're interested. Eamonn Fingleton is always worth reading.
My question is how can the WORLD economy expand without increasing the amount of currency? But still you refer me to an absolutely dumb analogy about little Jimmy earning a wage. ONCE AGAIN DO YOU HAVE A REASONABLE WAY GLOBAL GLOBAL GROWTH CAN BE ACHIEVED WITHOUT CREATING MORE MONEY? Don't refer me to a previous post!
My example applies globally or domestically. An entity (domestic or foreign) with cash, buys a good or service from another (that has a loan). Upon settlement, cash is transferred and the loan reduces. Global GDP grows, global aggregate debt falls.
What part of this is so confusing?
Tommy
6 Jan 2017, 01:34 PM
Just read your analogy again and it gets more retarded with every read . So please don't explain anymore
It can be confronting when discovering your world view is wrong. Some people take it well, learn and grow. Others lash out in anger and frustration. And then some prefer ignorance AND TYPE IN CAPITALS.
My example applies globally or domestically. An entity (domestic or foreign) with cash, buys a good or service from another (that has a loan). Upon settlement, cash is transferred and the loan reduces. Global GDP grows, global aggregate debt falls.
What part of this is so confusing? It can be confronting when discovering your world view is wrong. Some people take it well, learn and grow. Others lash out in anger and frustration.
Bye simon
The part where you have taken money out of circulation to pay the debt. Now there's no money in circulation!!? and you are calling this growth ??? Please explain?
b_b
6 Jan 2017, 01:36 PM
My example applies globally or domestically. An entity (domestic or foreign) with cash, buys a good or service from another (that has a loan). Upon settlement, cash is transferred and the loan reduces. Global GDP grows, global aggregate debt falls.
What part of this is so confusing? It can be confronting when discovering your world view is wrong. Some people take it well, learn and grow. Others lash out in anger and frustration. And then some prefer ignorance AND TYPE IN CAPITALS.
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