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adarmo

Interest rates stuck

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"If something was to happen that pushes interest rates up, we could see a lot of soft spots - places where there is high debt - start to unravel," Mr Rogoff said.

Clearly the rising rates that's the threat, not the debt then.

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3 minutes ago, Calcutta said:

What happens if they just don't raise them? 

The cheap credit creates asset bubbles like you see in housing and stocks, and you have no room for a monetary policy response when they pop, which is happening already. That's why rates have to rise, not because Mark Carney suddenly believes in the free market.

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6 minutes ago, Calcutta said:

What happens if they just don't raise them? 

The debt bubble continues to grow, lots of money gets malinvested (such as into property)... and eventually default so they have to raise interest rates.

 

Edited by Habitationi Bulla

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38 minutes ago, darkmarket said:

The cheap credit creates asset bubbles like you see in housing and stocks, and you have no room for a monetary policy response when they pop, which is happening already. That's why rates have to rise, not because Mark Carney suddenly believes in the free market.

Which is the reason many argued that Yellen started hiking.

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1 hour ago, Habitationi Bulla said:

That article was purely to have a pop at Trump as if this is all somehow his fault, when it was the Dems who spent 8 years making a very bad situation considerably worse.

I like how they say he's a bigger threat than China. I guess if he kicks of world war three I'll have to concede that one though. 

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17 minutes ago, adarmo said:

I like how they say he's a bigger threat than China. I guess if he kicks of world war three I'll have to concede that one though. 

I think hes just unfortunate enough to be in such a job when North Korea have made  advances in weaponry ... asking the North Koreans nicely didn't seem to work.

But the reason Trump won is because those before him were so utterly incompetent, self serving and mind blowingly useless, hence the only way he could get the job is with a totally screwed economy and the USA asleep at the wheel whilst North Korea created some nukes.

Still the Dems can blame him and the Russians for what was inevitably going to come.

Edited by Habitationi Bulla

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2 minutes ago, Habitationi Bulla said:

I think hes just unfortunate enough to be in such a job when North Korea have made such advances in weaponry ... asking the North Koreans nicely didn't seem to work.

But the reason Trump won is because those before him were so utterly incompetent, self serving and mind blowingly useless, hence the only way he could get the job is with a totally screwed economy and the USA asleep at the wheel whilst North Korea created some nukes.

Still the Dems can blame him and the Russians for what was inevitably going to come.

I agree. But I think we can go back to the Korean war to really understand where North Korea is coming from. General MacArthur actually wanted to nuke them when the US and South Korean military was pushed back to the southern end of the peninsular. He was overruled and removed from authority. I'm not certain but I think this was what resulted in the protocol and responsibility for a launch falling on the President. If your adversary had once tried to nuke you you might be fairly keen on developing that capability.

Fast forward a few decades and I concur Obama might have been well liked and down with the kids but he was not an effective president. The delay and pray and kill them with kindness simply bought NK time. NK no doubt looks around and sees how nuclear powers are treated around the world and feels like it would benefit immensely from having the bomb. 

My far fetched theory is that NK is sponsored by the USA. Cui bono logic - it's the only think that gives them a reason to maintain large military assets in that region and to collaborate with South Korea such that Russia and China are effectively penned in. My pot smoking days are behind me.... honest.

On a lighter note...... Kim Jong Il?

 

No...... Kim Jong's dead. 

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Who knows what goes on in the minds and lives of people with absolute power on both sides. Hilary was looking for a war with the Russians so either way war somewhere seems to be the goal.

Slightly off topic, but as someone who has been to Guam to work and had the opportunity to live there, if it did get nuked you probably wouldn't notice much difference. Only the Yanks could turn a Pacific Island into an utter sht hole. Its only when you visit such a place and compare it to similar paradise islands around the world that are free to govern themselves that you realise how much of a police state America is.

My pot smoking days are over due to the fact 2 drag on a weed spliff and its game over!

 

Edited by Habitationi Bulla

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