Curve may be flattening too quickly now???, page-153

"If anything the outcome could be a better more evenly distributed wealth in society."

That would be at odds with precedent.
Already you can see the rich (those with hard assets) getting richer from this and the poor (those that need to work to keep the wolf from the door) getting poorer.

I read the opinions of the smart people in the room - people who have a nous that is inordinately better honed than mine in sniffing out money-making opportunities - talking about asset pricing being the means by which all the debt that is being created will be inflated away.

If you thought the cost of capital going to zero over the past decade was something to behold, wait until you see it go negative in the coming decade, and the impact that will have on asset prices!

The difference in the financial fortunes of the owners of capital and those who are asset-poor and need to work for The Man is going to explode. And with governments today blowing huge holes in their balance sheets, I worry from where the money is going to come to provide safety nets for those in need of welfare.


"I am sure even you will be prepared to forgo your dividend imputation credits and sacrifice some of John Howard's superannuation and negative gearing rorts to support those thrown out of work. Maybe even include a pension assets test that includes the family home. "

Nah, totally wrong tree up which you're barking.

All of our investments are housed in my family investment company, which is taxed at the same rate as the companies in which it invests, so zero scope for excess franking credits to arise.

As for negative gearing, I'm far too conservative and too debt averse to even contemplate borrowing to invest. (In fact, most companies in which I am a shareholder have no borrowings. I routinely write to the directors of my investee companies urging them to avoid turning to debt capital for funding.)

And, anyway, I don't invest in property directly (too many friction costs and other hidden maintenance expenses); only indirectly via listed entities where the management of those companies attend on my behalf to the maintenance issues that may arise.

Finally, I do not receive a pension from the government, nor will I ever, so any notions of asset tests in relation to pensions are eternally irrelevant to me.