If standards of living mean owning a McMansion, driving around in a Range Rover or Porcshe, and being a right royal ....., well then everyone seems to be doing it pretty easy where I live.
But then again, how do I know whether it is all a charade done on finance or whether they actually own the stuff outright? Well I do know, because there aren't any jobs around here that can pay for that lifestyle.
However, so long as the bottom line figures, like GDP look good, I don't think government or people in general care if it is all propped up by cheap debt. More rate cuts will just be a band-aid measure.
If and when I want to deposit some money at the bank, it hardly seems worth comparing the rates because they are all doggy doo doo. If only I had enough money for the 0.1% to make a difference.
And, then on the flipside, what borrower is going to make a well thought-out economically rational purchase decision when the money they are getting from the bank is virtually free.
While we are on the subject of central banks artificially supressing interest rates, well we have the big boys like the US and Japan to thank for that. Unfortunately, we are just following the leaders.
Recently, however, thanks to the FED back pedalling on their increases to a whopping 2.5%, it is now quite clear the US economic recovery was a facade, backed up only by numbers and stock bubbles.
So where to from here? Well we can look to Japan for that answer. If one viagra for the economy doesn't work, then trying the whole bottle, because when it starts to deflate, its bye bye baby.
