Tell your friend he's an idiot. The *real* figures were released by a FOIA request, the aussie banks were on there. Also, *why* do you think the margins on commercial lending have recently been put up by the banks... remember all that talk of "swanny" cracking down and pushing competition..... actually don't answer, just let the CEO of Westpac answer... http://www.theaustralian.com.au/bus...ely-to-ease-back/story-e6frg96f-1225853260572 Credit is drying up. It's costing *more* to get the cash. As mentioned by GP in another thread, it's near impossible for him to borrow in the states to buy a cut price (-75%) house. So whilst your friend has a point.... ask him what happens when the fed will not lend anymore @ 0%. [....crickets] (kind of what we discuss here.... this is whats known as the "Sovereign Debt Crisis".... ie when China doesnt believe you'll pay it back anymore. wake up, the 0% came from nothing other than the printing press. Governments will try to inflate their way out of paying... China will just walk...
LOL. Similar tale when discussing 'wealth mgt' just last week. Aforementioned wealth manager questioned about previous investments etc. Told him about silver (with what I thought to be adequate background)....prolonged pause.... he said that wasn't such a great idea. He's also very bullish Oz property. And global recovery. *slaps forehead* I'm bearish on both, to be quite frank. Very polar bearish. I've said it before about so-called 'financial planners' and 'wealth managers': it would be up there as one of the easiest professions to function in. Until, of course, you meet a stacker...
I can't do that! He was in my wedding party, and he's godfather to my first born son.... He also believes in AGW. So, maybe, he is....
A bet each way i see... not such a bad move (no offense intended, just have him explain "what happens when 0% is not available next time".) This is where AusPM's rants are going.... those with debt will get slaughtered when cheap credit goes... and the only source of cheap credit is a printing press that China has now lost faith in.
Lol 75% increase last year, not such a great deal. Man these wealth managers are hopeless. Its exactly the same thing, when I rolled over my superfunds. The scummy bank tell at ANZ asks me if I need a financial planner to help manager the funds. I told them, they won't be able to make anywhere near the gains I would be making this year if they even tried. I would be lucky not to lose money. Slam
A question I wanted to ask. If hyperinflation happens, isnt it benefitial to actually get as much debt before it happens as possible? Spend it on Real valuable htings, such as houses, PMs etc. Then once hyperinflation hits, you can sell one kg of silver and pay off your whole debt. This way you have no debt and a brand new house. Sounds good to me. Get a smuch debt as you can is the logical way to go?
Yes correct, but... the only danger in the short term is that interest rates will skyrocket (to curb inflation), and that could screw you as wage increases normally lag behind inflation... also if for some reason it goes the other way and there is deflation you are screwed.
I assume you mean the fedral reserve. I keep hearing this but I've never seen anything to back it up. Got a link, or any proof? I'm quite sure the Reserve bank is gov owned.
The fed has stockholders and operates totally independent of the government, this means their main responsibility is to its major stockholders which just happen to be the big 4 banks who I believe are also board memebers. I will see if I can find a few links.
I think it is written to be misleading, from memory when i researched it its allegiance is to the commonwealth of Australia which is not the Australian government it is england and some how has ties into the english central bank (bank of england). or something along those lines.. here is some quick info i found;
The RBA is owned by "the commonwealth" The profits are paid to "the commonwealth" "the commonwealth" is *not* the Australian government, it is not us, the profits of this country goes to our owners. like the saying goes, it's as "federal" as fed express
In my books anyone who doesnt know that the FED is private needs to start teh whole research from the bottom. Watch Zeitgeist or something like that.
What do you have a problem with? did you do the research yourself or are you watching someones video that says it's crap?
Quite right and at the end of the day the treasurer, if the Governor-General agrees, can direct the RBA if it feels necessary.
The boards make the decisions, not the treasurer or the governor-general, they have an audit committee. just so happens that most of the board members are directors and board members of large corporate companies.
