Economist Nicole Foss talks to Amanda Morrall about peak oil, euro zone crisis, the next Great Depression and the big "trap" that is Auckland's housing market. I liked reading the debate in the comments section of this article too: In part one of a two part series on quantitative easing contributor Michael Coote explains how central banks play games with investment risk premia
Very interesting and applicable interview. Instead of only focused on the USA, it is focused on Canada, Australia and New Zealand. My wife and I have friends and relatives in Canada and New Zealand. What is coming will hit the hardest on the USA.
"Auckland is the sixth least affordable city in the world, the property bubble is huge, asset prices have a long way to fall, mortgages here are RESOURCE LOANS, so if people end up under water, and the house is foreclosed and sold for less than they owe, they will have to cover the difference. Is this the same for OZ? Are our morgages resource loans? Great interview. Thanks
Part two of the article I linked at the beginning of this thread: http://www.interest.co.nz/personal-...-easing-michael-coote-looks-magic-portfolio-s
It doesn't sound like she understands what peak oil is She predicted a drop in oil to $28 per barrel This is the simple reason why that can never happen - and this is what peak oil is Nobody can get oil out of the ground for less that $70 per barrel - therefore anytime oil gets under this - production stops (or just no oil gets sold into the market) reserves supply depletes, price goes back up over $70 Seriously peak oil ensures high oil prices - so i don't understand what she is saying.
Shes talking about deflation I don't believe that - its not going to be deflation - global inflation is what is going to happen The Bible predicts it in Revelation (I have studied it, it really does)
I don't deny it, however could you please advise appropriate verses? Personally, I believe that initially there will be a mix of inflation/deflation occurring. Big ticket items such as housing/land will deflate to wipeout the average persons wealth base. And necessities such as food, oil, medical etc will inflate.
Here is John Loeffler from Financial Sense news hour ( he doesn't really give verses but reading the book of Revelation for yourself may reveal the verses you are after) http://www.khouse.org/articles/1998/168/ (note the year written 1998) I would not mistake "bubbles' bursting as deflation - bubbles occur, and the market gets ahead of inflation, when the prices correct it may be considered evidence of deflation but that is not possible because the money supply is increasing - see the chart of gold over the last 2 years compared to the US money supply I would say everything is inflating but to recognize the real price rise it must come back to the real price... hence it appears deflationary only because of its overboughtness (if that's a word) Bubbles are the new normal - it seems
Revelation 6:6 Then I heard what sounded like a voice among the four living creatures,m saying, "Two pounds of wheat for a day's wages, and six poundsc of barley for a day's wages, and do not damageo the oil and the wine!" [youtube]http://www.youtube.com/watch?v=Gq3397I3wt0[/youtube] Now ask yourself - does an ounce of gold buy more or less food in today's market compared to a year ago
The people who believe it will be deflation will sell their assets causing over sold conditions But if INFLATION is the REAL issue those prices will be snapped up by people who understand it is inflation. If deflation is wrong - those who believe it is deflation will lose big time because they sell their assets and raise cash - the exact opposite thing you should do in an INFLATIONARY environment QUESTION: Has there ever been a deflationary crisis post abolition of the gold standard? Or has there only been inflation to hyper-inflation problems?
