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  1. H

    Australians are now the biggest borrowers in the world

    If there was any real truth to these types of inflation analyses then the current buyers of US Treasuries would be taking a huge bath right now, with a 2% nominal return in a 11% inflation environment. So I don't agree with the basic premise that US inflation is well above published values - a...
  2. H

    Australians are now the biggest borrowers in the world

    "Credit card" is not the right term. The interest rate on this debt beats credit cards, home loans or pretty much any other security available in the world. US Treasury Bond yields are hovering around 2% for a 10 year term (just below ATM). Note this rate is "locked in" for 10 years. Credit...
  3. H

    Australians are now the biggest borrowers in the world

    That may well be China's strategy for now but what about Indonesia? They only have about 250km to travel, with roughly the same population density as China (circa 100/km2 vs our 2.6/km2) - with 730,000 soldiers between regulars and reservists compared with our 50,000 or so it looks a little...
  4. H

    Australians are now the biggest borrowers in the world

    resources in ground divided by military capacity to defend it = very risky! Particularly when our good ol' Uncle Sam has his own problems to worry about...
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