Do you not see an issue with the debt worldwide, households, governments, councils? US DEBT for instance is $34Trillion, it's probably too big to even comprehend but interest has to be paid on that and that's pretty hard to do that if you're running a DEFICIT like the US is. The US debt doesn't include unfunded liabilities... look that one up, it's scary.
Australia's not looking so good either particularly Victoria who is closing in on $200 Billion Debt, 18 months away, which will need to be renegotiated certainly at a higher rate after Diamond Dan blamed Phil for talking him into borrowing as much as he could when interest rates were Zip, Households are going to be up for an extra 8-$10k per annum just to contribute to paying the interest bill, nothing off the loan, just the state government interest commitment. Then there's the inevitable downgrade which further add to the misery, so households are badly off now? It's only going to get worse as it is with Vic government budget.
There's lots of markers in the system to suggest credit is continuing to tighten, liquidity drying up, this is the cause of crashes.
Supply and Demand is an outcome, I keep telling you that, it sounds good but it's a useless set of numbers regurgitated by those too lazy to look any further than a headline (news readers, real estate agents)... it's about as good as listening to what the weather was today----try looking into the causes and you may get a picture of the dire circumstances we're all in, households and governments, try being ahead of the curve.
