Australia's largest stock trading and investment forum Australia's #1 stock forum

GOLD

Click for more information

0.51%

$1,391.7 gold futures

The debt doesn't need to be paid when interest rates are near...

First 105400 Last

Share
Profile

Follow
wallisd366

1,080 Posts.

172

28/01/22

14:18

Post #: 59193290
Share

Originally posted by Infose: ↑

"Why no mention of the record household debt? This kills your "pent up demand"."

Strange logic, really very strange. The savings are there because households neither did consume nor decided to pay debt.

One person that I met recently bought his home for $27.000.00. Now he is rich because his house is in the market for more than $850,000. And like him there are many more. That is why this is said to represent an inter-generational wealth transfer.

More generally, for every debtor there must be a at least one creditor. So with debt the income of A passes to B, the problem being that B may have less propensity to spend than A, a fact that may pose some constraints upon private spending in the long run. But that is completely a different story.

As I said, the savings are there ready to be spent. Full stop.

Expand

The debt doesn't need to be paid when interest rates are near zero. The savings are ready alright, to be spent on servicing the giant debt.
Upvote

0 Great analysis

Reply

There are more pages in this discussion • 21,028 more messages in this thread...

First 105400 Last

Add GOLD (COMEX) to my watchlist