Black Monday

[Blue Horseshoe]

Probably from using less hellfire missiles @ $70,000.00 a pop for a starter.

[Balance]

Yes, just wondering where Trump will take the money to pay for this big spending spree. The US debts are already unsustainable high and Trump promised to significantly cut taxes (instead of increasing them). Who do you think is going to pay for his promises?

Just keep printing for as long as inflation is not a problem.

[Beagle]

Just keep printing for as long as inflation is not a problem.

Stoke that fire long enough and it'll run away on itself with no possibility of being extinguished. Hyper inflation coming at some stage ?

[Balance]

Stoke that fire long enough and it'll run away on itself with no possibility of being extinguished. Hyper inflation coming at some stage ?

We already have hyper inflation in properties - this does not translate however into CPI.

The world is still full of surplus capacity and there are still countries like Vietnam, Burma, Bangladesh, Latin America and parts of Africa to provide cheap labour to produce the consumer goods at ever cheaper prices.

[bull....]

Yes, just wondering where Trump will take the money to pay for this big spending spree. The US debts are already unsustainable high and Trump promised to significantly cut taxes (instead of increasing them). Who do you think is going to pay for his promises?

does he care who pays? lol anyway deficit spending is just another leg in Keynes theory to get an economy out of the mire.

cant say I remember ever seeing nzx swing around so big in a week looks like another big swing today

[Beagle]

We already have hyper inflation in properties - this does not translate however into CPI.

The world is still full of surplus capacity and there are still countries like Vietnam, Burma, Bangladesh, Latin America and parts of Africa to provide cheap labour to produce the consumer goods at ever cheaper prices.

That's not the sort of hyper inflation I'm talking about mate. Think Zimbabwe. Rain money down long enough like some sort of Ben Bernake Mk2 on super steroids and the results of that experiment could be very interesting.

[BlackPeter]

does he care who pays? lol anyway deficit spending is just another leg in Keynes theory to get an economy out of the mire.

...

Probably not - but he still will need a budget. And if we think that government debts are unsustainable now, than cutting income and increasing spending is unlikely to help.

[bull....]

Probably not - but he still will need a budget. And if we think that government debts are unsustainable now, than cutting income and increasing spending is unlikely to help.

deficit spending relys on growth to pay for the tax cuts and spending and inflation rising to reduce the deficit in real terms over time in theory anyway so guess someone else down the track will have to worry about it if it doesn't pan out lol

anyway nzx wow down 3 odd % yest up 3-4% today just goes to show you should always retain some exposure to stocks in a portfolio

over an out time for bed lol

[Hoop]

We already have hyper inflation in properties - this does not translate however into CPI.

The world is still full of surplus capacity and there are still countries like Vietnam, Burma, Bangladesh, Latin America and parts of Africa to provide cheap labour to produce the consumer goods at ever cheaper prices.

Yes, just wondering where Trump will take the money to pay for this big spending spree. The US debts are already unsustainable high and Trump promised to significantly cut taxes (instead of increasing them). Who do you think is going to pay for his promises?

That's not the sort of hyper inflation I'm talking about mate. Think Zimbabwe. Rain money down long enough like some sort of Ben Bernake Mk2 on super steroids and the results of that experiment could be very interesting.

No experiment Roger..Its a cycle...You will start to hate me using that word..eh...

I've been around for a while now... stepped in a few piles of dinosaur poop in my day but personal observation is worth heaps more than reading it in books and reacting/believing to all the opposition to change opinions..

Back before 1980 the world was in an era of protectionism with large tariffs on cheap imported goods, trading was difficult and full of regulations, currency was pegged and the flow of money was restricted....The smaller countries like NZ found the going tough and usually lagged in economic changes...After decades of domestic industry protection the worlds system lost its vibrancy and stagnated, domestic got "fat" lost its competitiveness lost the need to innovate.. price of domestic goods got very expensive labour was overpaid and inefficient and the internal economy started to falter..public groundswell started to rise and the tipping point came with the Oil shocks....The public got fed up, the government opposition took notice, presented a new world order to make their Country great again and the public swept them into power ,,so entered "globalisation" together with free markets and monetary policy..Britain was first (Thatcherism) followed closely by USA (Reaganomics) and lagging a few years later NZ (Rogernomics)...A new era always comes with teething problems, shift of company and industry dynamics with the lazy companies unable to adapt hitting tough times, the very powerful organisations affected by change fight against it. The public who many voted for change did not expect that their life would change too helped to create more unrest..and so those resisting change or unable to adapt went down kicking and screaming..

Back to 2016..The public groundswell against migrants creating cultural and housing problems, dominating overseas companies invading the home turf, holding Governments to randsom (e.g paying next to no taxes) and dictating (forcing) how the public buys their products and services, free markets and cheap overseas goods robbing the home countries of their home grown industries and jobs..finally hit a tipping point with migrant flood in Europe....Brexit (The English decided it was time to get their country back)...and now USA has followed...Expect NZ to follow down this more protectionism path in a few years time....The Central Bank's glory years are coming to an end and a start to increased domestic controlled industries through import restrictions, lower taxes to fuel the local industry growth via more spending power..

AS all new systems have teething problems and have their fair share of opposition they (system) usually start off with vigour and for the next decade or two will proceed well..Only after decades of increasing restrictions will this protectionist system start to deteriorate as it did back in the 1970's..remember when restrictions got to the point (of ridiculous) when huge tarriffs had to be put into place to protect the Thames car assembly plant and Pye radios and TV's from technically better and cheaper overseas competitors products so inflation rises.. to combat inflation more regulations such as..price freezes rent freezes and selected import bans (Couldn't buy golf balls for a few months ) due to balance of payment problems..The public groundswell for change began to increase.

I was tertiary educated in the late 70's early 80's to believe time was upon us to change from a regulated economy. The overuse of restrictions was strangling the economy and the economic situation has lost its vibrancy....so it was time back then to free up the markets via monetary policy...

Now it seems with the loss in vibrancy and restricted slow growth with the overuse of monetary tools to the point of being ridiculous .eg Helicopter money...it's time again for the Western world to change and once again restrict the free market...The public out there are speaking and the Opposition parties are listening..

The cycle continues to revolve ever so slowly ..eh..

Recommendation for Success: Don't resist, have an open mind, learn to embrace the changes to your advantage, and adapt quickly!!

[Zaphod]

Yes, just wondering where Trump will take the money to pay for this big spending spree. The US debts are already unsustainable high and Trump promised to significantly cut taxes (instead of increasing them). Who do you think is going to pay for his promises?

My take on this is that by imposing significant tariffs on Mexican (and probably Chinese) goods and significantly lowering the corporate tax rate, this will kick start the mothballed factories throughout the US and thereby provide employment and stimulating the economy.

Personally, I can't see it working. Many of these factories have been mothballs for decades and require significant investment to restart them, along with retraining of staff. At the end of the day Americans not pay $20 for their Walmart cups that used to be $1. Once the economic reality of US manufactured goods hits the voter in the pocket, the reality of the situation will hit home.