tomatoes
Senior Member
Posts: 1,065 
Likes: 1,089
|
Post by tomatoes on Oct 25, 2018 10:29:02 GMT 10
|
|
|
|
Post by spinifex on Oct 25, 2018 16:29:19 GMT 10
Yep. And when a fiat currency dies it's always via uncontrolled inflation. So owing anything is better than owning 'cash' when that starts to happen. If you have debt it might even inflate itself out of existence ... assuming one can keep their income stream in front of the interest rate curve. It's all madness! |
|
spatial
Senior Member
Posts: 2,396 
Likes: 1,560
|
Post by spatial on Oct 25, 2018 16:29:24 GMT 10
|
|
|
|
Post by spinifex on Oct 25, 2018 16:31:56 GMT 10
A great opportunity to buy up cheap before the biggest 'reflation' of assets of all time kicks off!
|
|
spatial
Senior Member
Posts: 2,396
Likes: 1,560
|
Post by spatial on Oct 25, 2018 16:39:30 GMT 10
It is indeed debt based madness and living beyond means. In 2008 the world was hours away from entire collapse of the banking system. Having cash on hand is good for the initial stages, but retailers will accept currency but not payment by card. I am expecting to wake up one morning and all banking facilities are halted. The banks take all your remaining funds as a bail in. It happened in Europe it will most definitely happen here and across the world.
That is my prppep scenario hence I find October's interesting.
|
|
spatial
Senior Member
Posts: 2,396
Likes: 1,560
|
Post by spatial on Oct 27, 2018 15:12:28 GMT 10
The end of the road for Australian house prices - the insanity is having a reset. "For the past few years, homeowners just about everywhere have been able to finesse life’s problems by thinking “at least my house is going up.” This home equity accretion allowed them to buy stuff on credit, safe in the knowledge that even as they maxed out yet another credit card their net worth continued to rise. They felt smart and confident, in other words, and so continued to behave in ways that the modern world defines as normal and natural.
But now that’s ending. Home prices have stopped rising in many places and in a few canaries in the financial coal mine have begun to plunge. Here’s what “plunge” means for Australians"
In Australia it’s $1,000 a week, which is enough to darken the mood of pretty much anyone not in the 1%. A consumer with a dark mood is an unenthusiastic shopper because new debt accelerates the decline in net worth.
As home prices fall, so therefore does “discretionary” spending. Australians will continue to eat and to air condition their bedrooms, but they’ll cut way back on vacations, new cars, etc. And the debt-based part of the economy will suffer. This will cause stock prices to fall, knocking another leg out from under the average citizen’s net worth and making them even less likely to splurge. And so on.www.zerohedge.com/news/2018-10-25/here-comes-housing-bust-reverse-wealth-effect-australia-edition |
|
