"" Bottom line is EVERYONE has either benefited from the leverage economy either directly or indirectly "
Now that statement is classic. I really wonder how the direction of vast amounts of investment capital to non productive parts of the economy has benefited everyone. (as a small, tangentially related example, notice the Vic govt closing a major science research facility, but cutting stamp duty for first home buyers...awesome). Why be an innovative more productive country when we can just flip properties in a debt fuelled ponzi scheme?"
Classic all you think about is it's relationship to property when it has been so much more than that. Lots of that money has flowed through our economy providing jobs etc. I don't disagree that more money should be put into innovation but that is a lack of foresight from the government.
"A controlled inflationary deleveraging is very very hard to achieve. Even if you could, to put the brakes on at the end, you would need to really crank up interest rates, which I know you debtors love. "
Didn't say it would be easy. As for interest rates well you guys keep telling us they are going up regardless, so we may as well let inflation ride a bit higher as well to soften the blow over the longer term.
"What gets me livid reading UT's posts is, I am saving hard cause I don't think the good times will last."
You assume I don't? Just because I am an evil debt riddled demon doesn't mean I think the good times will last forever and don't plan for worse times. Personally I hate the whole buy it now and pay for it later mentality.
"But what's the point, if no one else will and we will be bailing them all out?"
Well all I can say to that is you have to take advantage of anything you can in the system to get ahead. As for bailing people out where have I EVER mentioned that! Higher inflation is hardly a bail-out it is just and economic tool. And any economic stimulus applied to the economy by the gov't or the RBA is to be expected as they will not just standby and let the economy burn without at least trying to fix it.
