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Financial Armageddon!!

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  • Inflation hits 4.9% for the September quarter, which probably means >10 percent in the real world.
    You little beauty, bye bye debt. Mortgage is going to get a whole lot easier to pay off in the future.

    Last edited by Engineer; 25-10-2021, 07:14 AM.

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    • This is a somewhat interesting fact.

      Government Debt in New Zealand averaged 28499.32 NZD Million from 1972 until 2021, reaching an all time high of 102080 NZD Million in 2021 and a record low of 405 NZD Million in 1972. The government debt chart is starting to look the same as Auckland median house price chart. Where is this all heading?

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      • Originally posted by Engineer View Post
        Inflation hits 4.9% for the September quarter, which probably means >10 percent in the real world.
        You little beauty, bye bye debt. Mortgage is going to get a whole lot easier to pay off in the future.
        Agreed

        The US federal reserve added (printed) 40% more money (M2) to the system .
        https://tradingeconomics.com/united-...oney-supply-m2

        All currencies are pegged to the USD.

        My real estate portfolio increased 40% since the start of the pandemic.

        If inflation erodes debt I think the government missed the bus on taking on more debt,it should have been taken on last year, not extend lockdown when the rest of the world is opening.

        Although this is unlikely, if New Zealand defaults on its debt payment obligations our credit ratings is lowered.

        Borrowing money becomes more expensive for government and individuals, growth slows, economy tanks, unemployment rises , housing market collapse.

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        • Originally posted by Jeffa View Post

          Agreed

          The US federal reserve added (printed) 40% more money (M2) to the system .
          https://tradingeconomics.com/united-...oney-supply-m2

          All currencies are pegged to the USD.

          My real estate portfolio increased 40% since the start of the pandemic.

          If inflation erodes debt I think the government missed the bus on taking on more debt,it should have been taken on last year, not extend lockdown when the rest of the world is opening.

          Although this is unlikely, if New Zealand defaults on its debt payment obligations our credit ratings is lowered.

          Borrowing money becomes more expensive for government and individuals, growth slows, economy tanks, unemployment rises , housing market collapse.
          so if you have lending now is it best to try and spend it? Could the screws be turned harder on borrowing from the banks?

          "DEBT BECOMES IRRELEVANT WITH INFLATION".

          Comment


          • Originally posted by Frezzinghot View Post
            so if you have lending now is it best to try and spend it? Could the screws be turned harder on borrowing from the banks?
            Depends on what you're spending it on.

            I said in March 2020 you would only have a window of about 2 years.

            That windows now closed early due to panic and greed.

            There's money to be made, I just don't think it's in real estate right now.

            Rental yield, tax,interest rates,borders and population need to make sense or your just left holding a bag of poop while everyone else has left the party.

            I can pay cash so will be taking my time when the markets flat, thems were you find the bargains.

            Comment


            • Originally posted by Jeffa View Post

              Depends on what you're spending it on.

              I said in March 2020 you would only have a window of about 2 years.

              That windows now closed early due to panic and greed.

              There's money to be made, I just don't think it's in real estate right now.

              Rental yield, tax,interest rates,borders and population need to make sense or your just left holding a bag of poop while everyone else has left the party.

              I can pay cash so will be taking my time when the markets flat, thems were you find the bargains.
              True. And largely why I’ve found nothing worth investing in. The costs are just too high. In saying that if I find something that makes sense I may look at it


              "DEBT BECOMES IRRELEVANT WITH INFLATION".

              Comment


              • NZ inc economy is starting to look like it’s being mismanaged. Record trade deficits, record government debt, accelerating inflation, interest rate increases bleeding money out of people’s pockets ect.
                I see inflation fell from 3.8 to 3 percent in the last quarter in Aus where as ours hit 4.9 percent.
                interesting times are coming.

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                • Originally posted by chook View Post

                  China Evergrande crisis is a developing story with a lot of contagion which looks to be snowballing, the longer this go's on the harder it will be to stop.

                  Fantasia & Sinic are now readying for default also with missed interest payments.

                  Chinese property development market worth 55 Trillion (that is no typo)

                  Rats are leaving a sinking ship which is normally a very bad sign...
                  "This is going down, and its going down big" ...Gerald Celante

                  BEWARE everyone, get your money out of the banks! Chinese financial property meltdown Contagion is spreading quicker than the delta virus

                  Latest: Another Chinese developer 'Modern land' has missed their $250 million interest payment AND their principle payment.

                  Goldman Sachs advises there is $8 TRILLION Chinese debt.....if this debt bombs blows there wont be many survivors..

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                  • Up, somewhere in between ignoring it totally and total irrational panic would be nice.

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                    • Originally posted by McDuck View Post
                      Up, somewhere in between ignoring it totally and total irrational panic would be nice.
                      Most have no idea, they are obsessed with not getting a cough at the moment. The latter "Total irrational panic" will come into play further down the track when it is too late.

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                      • Its difficult to assess the China Evergrande situation as a lot of the information will not be released into the public domain, until we really see the 'world is ending' headlines in papers. But it is worth keeping in mind and preparing for a GFC kind situation. We have had over 10 years of very good financial times, the not to good times have to eventually come. All the experts will try their best at predicting it (just like everyone has become a medical expert in COVID) but its anyone's guess really.
                        Living a more meaningful & enhanced life with investments, business and blogging. www.theFIminator.com

                        Comment


                        • Originally posted by Zorwarrior View Post
                          Its difficult to assess the ....
                          I get the general impression that China's romance with the free market is over.

                          So, from now on in, we can expect different behavior.

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                          • China CCCP will save the day - or they’ll have hundreds of millions of their own people rioting - which they won’t let happen. Plus the CCCP won’t want the world thinking they’re weak and not in control.

                            Cheers

                            Donna
                            SEARCH PropertyTalk, About PropertyTalk

                            BusinessBlogs - the best business articles are found here

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                            • Originally posted by chook View Post

                              "This is going down, and its going down big" ...Gerald Celante

                              BEWARE everyone, get your money out of the banks! Chinese financial property meltdown Contagion is spreading quicker than the delta virus

                              Latest: Another Chinese developer 'Modern land' has missed their $250 million interest payment AND their principle payment.

                              Goldman Sachs advises there is $8 TRILLION Chinese debt.....if this debt bombs blows there wont be many survivors..
                              Evergrande & five other Chinese property development companies now officially in DEFAULT. The Chinese Govt tried to cover this up but the inevitable has happened..

                              The general public still dont realise this is the catalyst for a massive worldwide financial meltdown in the coming months...

                              Ignore at your own peril fellow pagans..

                              Comment


                              • Originally posted by chook View Post

                                Evergrande & five other Chinese property development companies now officially in DEFAULT. The Chinese Govt tried to cover this up but the inevitable has happened..

                                The general public still dont realise this is the catalyst for a massive worldwide financial meltdown in the coming months...

                                Ignore at your own peril fellow pagans..
                                Pop go’s the weasel. What impact on NZ???
                                "DEBT BECOMES IRRELEVANT WITH INFLATION".

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