Don't save, just borror. Thats the RBA's motto.

Discussion in 'Markets & Economies' started by leo25, Sep 12, 2019.

  1. leo25

    leo25 Well-Known Member Silver Stacker

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    https://www.msn.com/en-au/money/personalfinance/reserve-bank-warns-against-households-reduced-appetite-for-debt/ar-AAH9OIf?li=AAgfOd8

    Be a good slave and borrow more.
    Maybe the public should be able to do fractional reserve banking too. For every $100 you save you can spend $1000. Then take that $1000 and put it onto a shadow bank, now you can spend $100,000. Next make a few highly leveraged derivative bets, now you have $100,000,000. Problem?


    How times have changed.

     
    Last edited: Sep 12, 2019
  2. ozcopper

    ozcopper Administrator Staff Member

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    Party Party Party.....
     
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  3. willrocks

    willrocks Well-Known Member Silver Stacker

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    Too bad for all the retirees.
     
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  4. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    What could possibly go wrong?
     
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  5. leo25

    leo25 Well-Known Member Silver Stacker

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    It's ok, when it all goes bellyup we can all get a bailout, it's a full proof plan. Well that's what a central banker once told me. :eek: Then we can all write books on how we became so successful.

    This movie made a lasting impression on central bankers. How it perfectly reflects what they do :).
     
    Last edited: Sep 12, 2019
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  6. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Read this in SMH and had to laugh.

    In 2018 the RBA was worried about the increasing household debt levels and just a year later, "don't worry...borrow more etc". Looks like that trip to Jackson's Hole for some CB re-education did the trick.

    Anyhoo, if the Central Bank can't be the cheer leader for higher debt to support the FIAT currency scheme, who will. o_O
     
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  7. willrocks

    willrocks Well-Known Member Silver Stacker

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    Untitled1.png
     
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  8. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    [​IMG]

    Sorbent....the new sign of wealth in debased currency countries.

    [​IMG]
     
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  9. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    They don't get interest in the mattress full of $100 notes anyway whilst still collecting the full pension
     
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  10. harry_mr

    harry_mr Member

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    The RBA is getting a jump on the Fed before it lowers rates or it risks the AUD rising and hurting exports. On the other hand the FED is seeing cash pile up in the banks getting a return and must act to make this a less attractive option.
     
  11. dozerz

    dozerz Well-Known Member Silver Stacker

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    I feel so sorry for the boomers, franking credits not hit. Everyone else it's free money, let's party before we go negative.
     
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