Originally posted by Engineer
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How many auctions did I go to where some wealthy people from a particular country forced up the bidding to levels not usually seen before.
Causing locals to bid more and take out larger and larger mortgages to compete.
Did loose US monetary policy cause greater international money flows and mobility?
Every country experienced this situation.. so ...
And banks had the money to lend to fuel the locals at the party..
And how many people from crowded countries couldn't believe their luck when they could move here, get paid so much, and take out a whopping mortgage... and just keep doing that over and over,
I was reliably informed by one group that NZ was considered a soft target and foolish.
Sheep.
Does immigration drive inflation?
Does inflation drive immigration?
Is there a third factor that drives them both, and sorts of other activity?
PS , yes Chris.. using inflation to erode debt is a long term game.
Usually played over a lifetime.
Small snippets of time may go the other way.
Governments have been watering down currency for thousands of years.
It's just what they do.
If you're swapping one thing for another, and it's how many things, not the actual weight or volume of the thing,
just cut those things in half, and keep the remaining half.
But do it gradually so no one notices.
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