Deflationary Debt Trap

[errolanderson]

The deflationary debt trap has been sprung (IMO) . . . .

Prices can't inflate due to accelerating and excessively high gov't and consumer debt loads. Consumer savings are now exceptionally low. But our governments remain in a spending spree with apparent little concern about debt and its consequences. Not a good mix for our next generation.

Canada's Federal Government remains on a massive spending spree with our gov't debt spiralling. Alberta's debt load alone is now rapidly ballooning toward $100 billion . . . .

South of the border, the U.S. Fed may be forced to cut rates this year. Ideas of rising rates are now in the rearview mirror stateside. But for the Bank of Canada? . . . .

I writing this as a concerned Canadian taxpayer . . . .

[furrowtickler]

The deflationary debt trap has been sprung (IMO) . . . .

Prices can't inflate due to accelerating and excessively high gov't and consumer debt loads. Consumer savings are now exceptionally low. But our governments remain in a spending spree with apparent little concern about debt and its consequences. Not a good mix for our next generation.

Canada's Federal Government remains on a massive spending spree with our gov't debt spiralling. Alberta's debt load alone is now rapidly ballooning toward $100 billion . . . .

South of the border, the U.S. Fed may be forced to cut rates this year. Ideas of rising rates are now in the rearview mirror stateside. But for the Bank of Canada? . . . .

I writing this as a concerned Canadian taxpayer . . . .

The government spending is crazy , partly due to what I pointed out in the confused Canada thread .
Not only has the government spending been out of control they are throwing money overseas to countries that are totally opposite to the beliefes of Canada and our governments “values”
It’s bizzar when we can’t afford to give money away in the first place

[farmaholic]

There is a covert way manufacturers are inflating prices....

Anything that can be reduced in volume and sold for the same price is. Or quality of products that can't be shrunk are being made cheaper. It's happening before people's eyes and some don't even realize it.

[SASKFARMER3]

Equipment 670000 new

RB auction two years later 300000

Again how many deals are on the right side of the ledger after two years.

Guys are waking up slowly

[jazz]

Not only did the liberals spend $100B into thin air with nothing to show for it, they also scuttled hundreds of billions in resource projects on the books and another several hundred billion in investments that left the country forever and raised taxes on everyone and their dog to support stupid causes.

Their total damage to the country is roughly half a trillion dollars and that's before a recession takes hold. We r fd.

[errolanderson]

U.S. mortgage rates plunged today. Largest weekly decline in more than-a-decade.

Canada next? . . . .

[farmaholic]

U.S. mortgage rates plunged today. Largest weekly decline in more than-a-decade.

Canada next? . . . .

Errol. "Plunged" I think they are low already. I guess the drop on a percentage basis might look huge?

Example please.

[errolanderson]

Errol. "Plunged" I think they are low already. I guess the drop on a percentage basis might look huge?

Example please.

U.S.30-year average fixed mortgage last November approached 5 percent. Today, same mortgage averaged 4.08 percent, representing a near 1/4 percent decline this week alone, the largest weekly decline in more than a decade.

[farmaholic]

U.S.30-year average fixed mortgage last November approached 5 percent. Today, same mortgage averaged 4.08 percent, representing a near 1/4 percent decline this week alone, the largest weekly decline in more than a decade.

Ya, someone forwarded me a link. From the high you mention to the current rate.....is about an 18% drop in less than half of a year. I guess that is substantial but it is still cheap money to me. I also replied to him that I couldn't borrow money that cheap to buy Ag land.

I guess anyone needing to remortgage upon renewal or even taking a new mortgage, that 18% savings is good.

But I think I'm missing the moral of the story you are trying to convey....."rate drops to stimulate a cooling housing market"?
Or even an attempt to stimulate the economy as a whole?

[Herc]

Equipment 670000 new

RB auction two years later 300000

Again how many deals are on the right side of the ledger after two years.

Guys are waking up slowly

Guy selling his one year old stuff at Eatonia is about to find out next week. I estimate $150k savings over dealer prices. I may be high but we’ll see.....

[jazz]

Citi global economists and strategists have come out and actually predicted what investors have been concerned about for the past six months, a global recession.

“From goldilocks, via a brief reflation, we are heading to stagnation and then, probably, recession. European and Asian weakness is consensus. But US lead indicators suggest more downside delta to come in the US. Citi curve models put the probability of a US recession in a year at 37% but have never reached more than 50% even when recessions occur. So that’s 75% adjusted. As, and if, the curve inverts more, probabilities rise exponentially anyway. Hence we think the risks around Citi economic forecasts are solidly to the downside, and advise investors to prepare for recession.”

[errolanderson]

Citi global economists and strategists have come out and actually predicted what investors have been concerned about for the past six months, a global recession.

“From goldilocks, via a brief reflation, we are heading to stagnation and then, probably, recession. European and Asian weakness is consensus. But US lead indicators suggest more downside delta to come in the US. Citi curve models put the probability of a US recession in a year at 37% but have never reached more than 50% even when recessions occur. So that’s 75% adjusted. As, and if, the curve inverts more, probabilities rise exponentially anyway. Hence we think the risks around Citi economic forecasts are solidly to the downside, and advise investors to prepare for recession.”

Jazz . . . U.S. Federal Reserve is already under pressure by some of its governors to cut rates sooner-than-later. Low-degree panic is already setting in . . . .