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  1. #301
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    If I read it right ECB will now charge banks to put money on deposit. There must be a tipping point when people get paid to borrow money and charged to lend it, that the financial system and money becomes meaningless. Dairy farms are being bought in NZ on 2-3% finance. Funny money is buying real assets. I am a fool for waiting for a crash and I don't see any point in having a lot of money on deposit.

  2. #302
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    Why interest rates aren't going up as fast & as far as some experts are predicting ???
    http://www.nzherald.co.nz/sharemarke...ectid=11266904

  3. #303
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    Quote Originally Posted by belgarion View Post
    As can be seen from the US Fed, UKRB and now the ECB ... Deflation must be avoided at all costs.

    Consequently, buying any physical asset that generates a cash flow large enough for what you borrow now, even if there's a significant write down in subsequent "book value", inflation will always come to your rescue ... Just make sure you can service the borrowed money's interest.

    Hmmm, GD1 must be here if the ECB is forced to reduce interest rates into negative territory. This is an historic day!!! ZIRP in Europe to be replaced with NIRP!!!

    http://www.bbc.com/news/business-27717594

    These are depression era policies that can only mean European policymakers accept the reality that they are combating a depression – even if they will never be able to admit that.

    This piece below on Japan and China provides an interesting perspective on events in the South and East China seas...

    http://www.businessspectator.com.au/...ign=kgb&modapt=

    How will the race against machines play out for the unemployed within the OECD? Unquestionably creating more unemployed...

    http://www.businessspectator.com.au/...ign=kgb&modapt=

    American importers are rushing to embrace the Renminbi as a trading currency as this article shows...

    http://blogs.ft.com/beyond-brics/201...s-home-market/

    I actually picked the above link out of another site where the only comment that came from an American observer was “holy****”. He/she obviously understands the implications for the US dollar and USA economy.

    Now for the election of those who are to govern the EU. It is getting absurd. Is the EU to become the 4th Reich or not? The plot thickens...

    http://www.businessspectator.com.au/...ign=kgb&modapt=

  4. #304
    F.A.B. Huang Chung's Avatar
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  5. #305
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    Quote Originally Posted by Huang Chung View Post
    So Paul Krugman has three concerns with deflation
    1/ people will spend and consume less. (in a world that has concerns about global warming is this really a problem)
    2/Borrowers will be worse off than lenders (horrors responsible people not borrowing to excess being rewarded for their conservative approach)
    3/Wage earners might do better as there would be a reluctance to reduce wages.(People on a fixed income like wage earners do worse with inflation)

    I can see now why deflation is a big concern thanks Paul K for spelling it out.
    I guess the argument that reduced economic activity would lead to marginal businesses going under and increased unemployment but how bad a problem would this be.
    Last edited by Aaron; 08-06-2014 at 10:16 AM.

  6. #306
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    I hope there aren't too many Mean Reversionists in the Financial World.....


  7. #307
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    Food for thought.


    James Howard Kunstler: Peak Oil and Our Financial Decline




    http://www.deeps.tv/hzDA6MBI0nR3P
    '''''''''''''''''''''''
    '''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''
    http://www.youtube.com/watch?v=QovBLFZhQME

  8. #308
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    Just thinking about inflation versus deflation. A couple of arguments in todays news. Based on the reasoning behind the arguments I think central banks should stop trying to prop up the current system. Stop robbing the savers and people on fixed incomes. Sloshing money around driving up the price of existing businesses and assets doesn't make the world a better place.

    By Mark Gilbert
    http://www.bloombergview.com/article...-is-convinced-

    Also this from the Mooch (not as interesting as the first article)
    http://money.cnn.com/2015/01/21/news...vos/index.html
    He obviously needs inflation to keep making money by moving capital from place to place.

    Also why all the news coverage on Davos. A group of well off, well connected people aren't looking to change anything that will affect their status and life style. Don't expect much from Davos.

    Another article on deflation by Mish Shedlock
    http://www.marketoracle.co.uk/Article49095.html
    Last edited by Aaron; 22-01-2015 at 10:28 AM.

  9. #309
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    So heres the quandary as far as i can see it--with deflation ,Cash is king--But if deflation really kicks in,banks get into trouble and those with cash cant get their money anyway--or at least a percentage of it.
    So those that fear deflation not only have to stay liquid,but have the additional complication of retrieving their cash.
    That doesnt leave many options on the face of it.
    Have you ever tried to take $950,000 out of the bank to put under your mattress--That would be a job in itself with all sorts of complications,not to mention a lousy nights sleep(thats 9,500 100s)

  10. #310
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    What will this do for house prices in Auckland.

    http://money.cnn.com/2015/04/22/inve...pe/index.html+

    My save and invest in the next downturn idea will look pretty silly in a few years. I thought people taking out big mortgages were taking the risks. Looks like I was wrong.

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