But the government, rba, etc don't actually produce anything. So their tricks will shift wealth around for a while (from the future to the present, from first home buyers to existing home owners, from the rest of the world to Australia) but eventually the game runs out of steam and somebody actually has to produce something.
Steve Keen finally admits he was wrong!
- Thread starter Shadow
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But the government, rba, etc don't actually produce anything. So their tricks will shift wealth around for a while (from the future to the present, from first home buyers to existing home owners, from the rest of the world to Australia) but eventually the game runs out of steam and somebody actually has to produce something.
We can afford to pay the interest until the interest is equal to our GDP.
It would sort of suck though that at that point we would not even have enough money left to eat. I'm sure it won't get that bad - the rest of the world will see through our tricks well before then and stop financing us.
There's that word again. Eventually when? Will we still be alive?
Yep - I guarantee it.
But even if we're not alive, actually giving 2 ****s about the next generation would be great. We don't see much of it these days - it's all about me, me, me.
Well the answer to this is easy.
I think WW should transfer his money to China and buy property in China.
Since they have a current account surplus, then everything must be hunky dorey. No need to worry about anyother investment analysis. Country has CA surplus buy, country has current account surplus: sell
I think WW should transfer his money to China and buy property in China.
Since they have a current account surplus, then everything must be hunky dorey. No need to worry about anyother investment analysis. Country has CA surplus buy, country has current account surplus: sell
When you made a nice little profit out of selling your Taringa unit who did you give 2****s about. The person buying it or yourself.
you rise a good point here Shadow,
but you forgot the main scenario where we can't pay. That is if commodity prices goes down, together with global deflation, we won't be able to pay as our debt doesn't deflate. That is not a big if because at present we have negative inflation in US, UK, China, Japan, and kind of zero inflation in europe.
also do you think will take much time to get a double foreign debt? we just need a big drop in the AU$ (from foreign investor stop lending to australia and taking some money back).
no we can't, are you going to hand over to debtor your groceries every time you go to the supermarket and get home empty handed?
in the long term interest can be paid once our gdp increase is enough to cover it. So, if those money come in the country to fund investment and future gdp increase is all good (as much as those are good investments), but if those money just fuel more consumption through home price rises and people withdraw equity is very bad. the risk is that those investment funded with money from overseas are going to mining company and much of those mining capacity increase is giving good return during mining boom and high commodity prices but when price drop like last year you get those mining company closing down expensive mining sites while their debt to foreigners stay and like Rio few months ago are all very easy to fall in hands of foreigners or bankrupt.
Since they have a current account surplus, then everything must be hunky dorey. No need to worry about anyother investment analysis. Country has CA surplus buy, country has current account surplus: sell
The Australian CAD fueled lifestyle is funded by countries that run surpluses Chilli and HE.
But boring macro fundamentals are just going to have this thread going around and around and around.....
That may be true but I'm still comfortable that it won't be happening in my life time, especially not in the next 15-20yrs while I'm in the growth stage. After that the income sources I've generated will be more than enough to provide me with the wealthy life I intend on leading regardless of the asset prices.
I do care about the next generation, but I'll be more specific - I care about my next generations ie kids and grandkids. I'll educate them and help them to succeed the way I will. And heck if they make a few mistakes in their attempts along the way, I'll have more than enough wealth to go around once I pass.
I'll let you continue to worry about the next generation on mass - as long as mine are ok, I'll be content I've done a good job.
Steve Keen: Superannuation investors could fuel house price boom
Even Steve Keen reckons a second boom may be coming. He has finally seen the light!
Full article: http://www.news.com.au/business/money/story/0,28323,26032980-5013951,00.html
Even Steve Keen reckons a second boom may be coming. He has finally seen the light!
Full article: http://www.news.com.au/business/money/story/0,28323,26032980-5013951,00.html
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Even Steve Keen reckons a second boom may be coming. He has finally seen the light!
Full article: http://www.news.com.au/business/money/story/0,28323,26032980-5013951,00.html
Property warrants in super may be one way, but lending criteria/requirements for super loans will need to loosen for this to really take off I think.
But the halving of deductible super contributions could be another way, with people using negatively geared residential property as an alternative way to reduce overall tax paid.
If individually everybody takes that self centred approach then collectively we are doomed.
Meh, I'm one guy, I'm not changing the political system for the better. Either are you despite how much time you'll spend talking about it over the years. I am however getting wealthy in the process working with the system the way it is.
Spot on, as an individual you just tear yourself up trying to change the system, so just accept the system and look at ways to profit from it.
Even Steve Keen reckons a second boom may be coming. He has finally seen the light!
Full article: http://www.news.com.au/business/money/story/0,28323,26032980-5013951,00.html
and you watch - it was his view all along and he was misunderstood and misquoted...
considering how insanely incorrect he was about the "crash" - now i'm worried about buying because he reckons there'll be a boom - how wrong can he get it this time?
...Then he will want to claim the underdog status and appeal to the egalitarian decency of common Australians to let him off the hook of losing the RE trend bet with RR and the penance trek from Canberra to Mt Kosciusko.
Sydney Inner CBD is hot as well, from a reliable report, I know a new 44 x 1 bed site, at hole in ground stage, sold 100% to operator as student housing.
FYI Peter
So the question for everyone to ask is what level of property will move to start another "Boom", the lower end,mid range,or properties above the 1 mill mark,depending on the land content and longterm development plans
I still think Prof Keen was right it's just the time frame and % was way out.
imho willair..
I still think Prof Keen was right it's just the time frame and % was way out.
imho willair..
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