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.

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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.
US economy
The Real Deep State Candidate
Why did voters and investors turn their lonely eyes to a reality TV star…and put their trust and faith in a bombastic huckster, rather than a more conventional scallywag? In short, the fix was in…and Mr Market knew it.
Australian financial markets
30 Years On…Not Much Has Changed
Tomorrow marks the anniversary of the bleakest day in ASX history. On 20 October 1987 — 30 years ago exactly — the Australian market crashed by a massive 25%. That figure paints the day in better light than it should.
US debt hole
No Way Out of This Black Hole of Debt
Why can’t Congress pass a serious tax reform measure? Because the feds need money. They can only get money from the people who have it — the rich. But the rich control the government and its tax-writing committees. So, the feds are stuck. And so is the entire economy.
US economy
The Greatest Mystery of the 21st Century
US economy is running at about one-half to one-third of the rate of growth during the 1960s and 1970s. And by our estimation, more than half the country has been in a depression for the entire 21st century.
Australia economy going downhill
The IMF Has Read ‘The End of Australia’
The blind pursuit of ‘economic growth’ has delivered us to the point where the end of Australia, as we know it, is now coming into plain view. Finding something to smile about in this sad and sorry state of affairs is not easy.