Actually she is correct on that point. Do you know anything about the terms and conditions of the treaty of Versailles signed at the end of WW1. We all celebrate it on Armistice day every year on the 11th of November.
The terms imposed on Germany were so punishing that WW2 became inevitable, as did the rise of a fascist dictator in Germany.
After the hyperinflation era in Germany, it then became the miracle economy when they used a fiat money system and backed their currency with production, not gold, which is what we do now in Australia.
Learn your history Chris.
I wasn't arguing the validaty of the historical component, what I argue is the average 'Aussie shella' mum and dad type investor she makes herself out to be is contradictory to historical economic quotes like this.
I wasn't arguing the validaty of the historical component, what I argue is the average 'Aussie shella' mum and dad type investor she makes herself out to be is contradictory to historical economic quotes like this.
It shows the 'skamy' sock is a sham.
Not only is she Irish, she also claims to have been an maths/stats professional or teacher of some sort in the past I believe, so no real surprise she shows a detailed knowledge of European historical events.
For Aussie property bears, "denial", is not just a long river in North Africa.....
The puppeteer's letting you get right amongst it Roddy. Why is that relationship stable or unstable? It makes pure sense that there is a strong relationship between private debt and GDP, but what is the nature of the relationship Roddy? Does GDP drive private debt or is it the other way around? What mathematical function would help to explain that? How do you measure loan quality anyway? All loans are good until they're bad I thought. What did they teach as a sales cadet? Is there an intrinsic value of loan quality? Can it be quantified? If not, what use is it?
What mathematical function would I use to assess stability and sustainability of the exponential relationship between the ratio of debt to GDP and GDP?
I would not take a mathematical approach I would use an inductive approach - this is very common in Human reasoning and serves us very well for the vast majority of our decision making. Why are you obsessed with trying to force everything into numerical models?
Logically the approach I would take is the following:
Observation of empirical evidence tells us that as GDP grows so does the % debt to GDP. This has been a consistent observation across a wide range of economies and has been occurring for over 70 years.
Although there have been times of slower debt growth - the trend returns to mean over the long term. I can then use induction to say that because debt to GDB has behaved like this for a very long time the most reasonable assumption is for this to continue. I can then create and use a little heuristic to this effect. We do this all the time in every branch of research.
Any reasonable risk assessment of the empirical data would tell you the risk of this ratios long term trend causing massive detrimental effects on our economy is miniscule.
IMHO, Keen and his ilk either lack basic common sense or are deliberately trying to create fear and instability where none exists for their own political agendas.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
"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."
Great so you're saying we are about to have a Complete Collapse of our Banking System and Hyperinflation as well?
Thanks for that.
Quick better tell everyone to pull their cash out of the Banking system then....Money Isn't safe.
Wonder what happens to "Quality" of Loans in that case aye skammy?
Oh wait then you agree with Steve Keen.............
AAHAHAHAHHAHAHAHAHAHHAAAHAH
You are the one who is telling everyone to panic and behave as if there were a huge risk in the economy.
You are always shouting about getting out of property and watch out there is a big crash coming and all our investment in property will disappear. Yet here you are sneering when we point out that the same thing could happen to cash.
The truth is that your money is safe in the bank and my money is safe in my property. However my property gives a better yield than your cash and cash deflates in value every year.
Only old rednecks hoard cash, ever in fear of the big crash that is always just around the corner. Are you seriously going to grow old being one of those eternally frustrated doomsters? Or are you gonna wake up to yourself?
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
I wonder what happened to all those Syrians with property as opposed to those that had cash.......... You know those houses with new open plan living designs with better views of the street and your new neighbors toilet.....Could you take that with if you left.........Oh wait you cant.......But with cash you could leave when ever you want......
Here is my quote.
Khaderbhai
10 Jan 2017, 12:45 PM
In the scenario you describe, how would you get your $10M out of the bank when the computer on which your digits are stored has been blown up?<br /><br />In a collapse of society type event, you won't be able to get your hands on the money stored electronically in the bank.<br /><br />You're better off with physical property that you can actually hold and defend.<br /><br />Or have you abandoned the 'money in the bank' argument and now you're talking about holding $10M in physical notes?<br />
Here is your quote:
Khaderbhai
10 Jan 2017, 01:22 PM
Didn't say a word about Syria. I spoke of an event where society has collapsed and the banking system is no longer functioning.
Then this.
So not only do you look stupid with your original claims but then you want to change the topic........In the hope of avoiding the embarrassment.
Maybe time to stop digging......
So you are also saying that you need a bank to exchange goods for money?
Didn't say a word about Syria. I spoke of an event where society has collapsed and the banking system is no longer functioning.
An interesting scenario though. Property or cash is probably equally useless in a society that has collapsed and doesn't have a functioning monetary system.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy