Debt & Deficits

Politicians aren’t just content stealing (‘taxing’) your wealth, they like to steal the next generation’s as well thanks to deficit financing.

We like to keep track too of how Australia’s pollies bribe today’s voters with your money. We love dearly to win as much as those tax dollars back as we can for you.We also make sure you’re aware of the escalating debt around the world and how this impacts on interest rates, currencies and share markets.

Read more

global economy nearing a collapse
Feelings of Isolation
History teaches us that there’s an inverse relationship between complacency and risk. Lower complacency equals higher risk. From where I sit, we’ve reached an inflection point. One where the threat of wholesale capital destruction and widespread loss of livelihoods has never been greater. The level of overall bullishness drowns out mutterings of the worrier. Therefore, you withdraw to a place of isolation…far away from the crowd.
Australian property market
How to Own Almost 200 Properties
It’s not the number of properties that makes you rich; it’s the percentage you own. For example, imagine two investors. One owns 20 properties, the other owns three. Who’s better off? To decide, we need more information.
Trump economic policies will turn to big losses for US
Trump’s Short-Term Economic Policies Will Result in Huge Losses
These policies do nothing to alleviate any of these problems. In fact, they exacerbate them by putting pressure on future governments to cut spending. There’s a strong chance that the US will never pay their debts back. In the past the only two ways a country would get out of such a mess is by strongly devaluing their currency. Such a move would end the US’s economic dominance.
US economy crash
How the Fake Boom Ends
If the authorities want to increase the supply of money, the only kind of money supply they can increase is the fake kind. Real money must be earned; like wealth, it cannot be printed.
household debt burden
Blaming Everything but the Household Debt
Have you read any mainstream commentary identifying our world record household debt as the root cause of our economic miracle? I haven’t. Instead we’re dazzled with the brilliance of ‘adept management’ and ‘flexible inflation targets’.
Japan sticker
Japan: The Land That Forgot Time
The plan in Japan, as elsewhere, was the same old formula: create fake money…lend it at super-low rates…drive up inflation…and incite the public to spend and invest. The whole idea is preposterous.
Chinese economy
Is China A Ponzi Scheme?
Before stepping down as China’s central bank governor, Zhou Xiaochuan made a clear warning to the current political party. He told them to cut corporate lending, or face their ‘Minsky moment’.
china economy debt
Why You Should Care About China’s ‘Minsky Moment’
We’ve already seen it all play out in the US. Leading up to 2007, asset prices were soaring, encouraging borrowers to borrow more and lenders to lend more. But as we all found out, borrowing to buy six houses when you can only afford one eventually leads to disaster.