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John The Pessimist

Western Debt Reaches 200 Year High Warns Imf

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We're doomed according to AEP. However, while there may be parallels with debt levels in the '30s and immediately after the war, he doesn't explore the split between private debt & public debt. I suspect that previous level of extreme debt were mainly public (war bonds etc).

It's one thing force feeding gilts into my pension fund. It's completely different to expect me to swallow a pile of toxic mortgage debt, especially as I've avoided it personally.

http://www.telegraph.co.uk/finance/financialcrisis/10548104/IMF-paper-warns-of-savings-tax-and-mass-write-offs-as-Wests-debt-hits-200-year-high.html

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Osborne's bogus austerity has almost run its course. Genuine austerity is what comes next.

sovereign-rogoff.png

Edited by zugzwang

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It won't be paid back. The only way we create more money is with more debt. Digging a hole to fill another. Austerity won't fix anything - it just shifts assets to the rich. Post war was different - different money system.

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I'm surprised that article hasn't received more attention on this site? It really has massive implications for people who don't own property but have some savings set aside for a deposit.

The policy is essentially a confiscation of savings

Seriously, take note now folks. Nothing has actually been done to deal with the countries debt. But it will come. This won't come as a shock to old time regulars here, but maybe some are being taken in by the green shoot hyperbole in the press these days.

The IMF is spelling it out for anyone unclear on the issue, especially since you'll never hear it from a politician.

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For goodness sake the consequences of all the financial shenanigans doesn't bear thinking about.

Isn't it time that the culprits were AT LEAST given some time sweeping roads wearing stripey garments or some suchlike penalty.

Edited by billybong

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It's one thing force feeding gilts into my pension fund. It's completely different to expect me to swallow a pile of toxic mortgage debt, especially as I've avoided it personally.

Latest from AEP: Webchat: Are we entering the third phase of the Great Financial Crisis?

http://www.telegraph...ial-Crisis.html

As for the UK: " The UK is a cork bobbing on a rough sea."

So what would Ambrose do if he was head of the Bank of England, US Federal Reserve and the European Central Bank for a day?

"Stay the course in the UK, freeze tapering in the US until "escape velocity" assured, launch Abenomics for Europe with €2 trillion QE immediately .. force German inflation to 4pc with relish."

We'll be on HTB 15 if people like him (AEP) get their way, imo.

And probably still hpc-ers with their excuses for jumbo-mortgagors, and 'they just wanted a home' and all the other excuses, including pityful excuses from people who bought homes again with big IO mortgages just a few years back.

As for your wish to see a property crash through substantial rate rises so you can buy a family home, you could be displacing a family who just happen to have fallen on hard times illness, job loss etc.

However on here the desire for a property crash so doing nothing other than be in the right place to buy a house you couldn't otherwise afford is seemed as a good thing whilst making a profit through the same circumstances when profits rise is seen as some form of evil is very strange.

It is just speculation by another name - if you want a 'nice' house plan and work towards it or as we say believe in God but keep rowing.

Keep rowing whilst jumbo mortgagors and schemes help those who don't want to dirty their soft hands with a paddle sign up to mega-debt for over-valued homes.

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Latest from AEP: Webchat: Are we entering the third phase of the Great Financial Crisis?

http://www.telegraph...ial-Crisis.html

We'll be on HTB 15 if people like him (AEP) get their way, imo.

And probably still hpc-ers with their excuses for jumbo-mortgagors, and 'they just wanted a home' and all the other excuses, including pityful excuses from people who bought homes again with big IO mortgages just a few years back.

Keep rowing whilst jumbo mortgagors and schemes help those who don't want to dirty their soft hands with a paddle sign up to mega-debt for over-valued homes.

The usual Krugmanite drivel. QE is disinflationary. Only the swillers get to see any of it, it doesn't trickle down. Everybody else ends up paying more for food and fuel and rent while financial assets and house prices get ever more extended. We only need to wait til April 1st to see what an unqualified disaster Abenomics is. Only helicopter drops can re-inflate the Japanese economy now, but that simply swaps one kind of catastrophe for another.

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