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Absolutely there will be a day of reckoning. Buyers of our debt...

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moondoong

46,174 Posts.

01/05/16

00:08

Post #: 17643648
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Originally posted by Hanrahan ↑

Brucey, our currency is an IOU, our $ does not represent one two thousandth of an ounce of gold or any other tangible asset. It's backing is the sovereign value of "Australia". Every IOU we issue will one day come back to be redeemed.

Unlike our credit card, which we cannot print money on our Canon printer to meet our obligation, Australia.Inc can. But every billion we print is like a share issue for a miner: It devalues existing shares. Only America can print money forever and not be devalued. But things can continue until they can't. There is always a day of reckoning.

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Absolutely there will be a day of reckoning.

Buyers of our debt will demand ever higher returns for the risk.

Australia is like a crack addict.

No amount of debt is enough.

When we're forced to go cold turkey it's going to be brutal.
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