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27/05/21
00:24
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Originally posted by princey37:
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All the inflation / deflation debate has me questioning what is actually meant by these broad statements. I am leaning towards believing both, but just in different areas, i.e. Inflation in assets and consumer prices, whilst at the same time we get deflation in the economic output i.e. stagflation. My concern is, how much further can these asset prices rise, and when will (If they do) the money taps get turned off? Very interesting times, hard assets are definitely the way to go, but I don't think leverage is very wise in this environment, it will only take one card to fall down in this house.
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IMO, it is useful to look at Japan's Lost Decade from 1991 to 2001 to see how a housing bubble, its Central Bank and Fiscal policies stumnned that economy. The question is are we on that track?https://www.investopedia.com/articles/economics/08/japan-1990s-credit-crunch-liquidity-trap.asp As a result, Japan now has one of the highest debt to GDP ratios in the world!