The great debt crash

[errolanderson]

Strap-in . . . .

Failed Keynes economics and out-dated central bank policy built this debt monster. Now central banks feel they can hike rates (at about the worst time) all in-the-name of fighting inflation, which has already peaked. Inflation can control itself in an open market without help of central bank manipulation.

This is setting-the-stage for the ‘big debt crash’ (next 2 to 3 years) with sustained asset devaluation. Inflation you say? That may be the least of the market’s worries.

[ajl]

Article on lumber futures prices said they are now coming down as fast as they went up. Not seeing relief at the pumps yet though.

[jazz]

errol, I think the experiment in MMT is the culprit.

That experiment blew itself up in a mere 2 yrs. At least Keynesian theory lasted 50 yrs or so.

[biglentil]

Surprise surprise stagflation

[beaverdam]

Surprise surprise stagflation

[ATTACH]10615[/ATTACH]

Instead of "The Nasty Man", replace those words with "Justin Trudeau" !

[Austrian Economics]

Commodity prices went up for a whole host on non-monetary reasons: Covid lockdowns and the supply chain disruptions that went along with them, green energy mandates that block infrastructure projects, and now the war in the Ukraine.

Now that some of these bottlenecks are easing, commodity prices will fall to some extent. However, the war in the Ukraine looks to be setting in for the long haul and green energy boondoggles show no sign of letting up. That will keep upward pressure on prices.

Raising interest rates does nothing to fix any of this. In fact, it will make things worse by forcing some suppliers into bankruptcy or out of the market due to higher financing costs.

[errolanderson]

Great debt crash coming-in-hot . . . . Real estate is a bulls-eye.

Apparently, 20 percent of U.S. home listings have dropped their price over past month. Inventories have jumped 10 percent since March. Mortgage refinancing has tanked 75 percent over a year ago. Lumber prices remain in-a-skid.

[furrowtickler]

Like anything, high commodity prices are absolutely meaningless unless you have something to sell .
Gold could go to $10,000 per ounce or oil to $200, if you have none it just costs you money in real terms

[furrowtickler]

I could have a 50 million dollar liberty ticket , does that make me an instant millionaire????

About the same chances

[errolanderson]

'Inflation' is now being hit head-on by the 'Great Debt Crisis'. Asset casualties beginning to drop on the sidelines. Layoffs apt to pick up into next quarter.

Timing of interest rate hikes couldn't be worse. Central bankers and academia have been bred to preach Keynes economics.

My apologies for sounding pissed, I am . . . .

[jazz]

How many people took their govt cheques and bought a house with it. Now 1M people have to pay it back and the govt is clawing their benefits to collect it.

Welcome to your marxist trial. I can believe how stupid people in Canada actually are. They deserve everything coming to them, no quarter, you voted for it, you can own it now.

[Sodbuster]

'Inflation' is now being hit head-on by the 'Great Debt Crisis'. Asset casualties beginning to drop on the sidelines. Layoffs apt to pick up into next quarter.

Timing of interest rate hikes couldn't be worse. Central bankers and academia have been bred to preach Keynes economics.

My apologies for sounding pissed, I am . . . .

The government is at fault they’re the ones that created this low interest environment now they have painted themselves into a corner by ignoring inflation for far too long. The biggest reason that housing got So High was because of low interest rates made bigger and more expensive houses affordable for people who otherwise wouldn’t be able to afford these houses. Land falls into the same category. If mortgage rates had stayed at 5% or more we wouldn’t of been in the $hit storm we’re about to experience.

[wheatking16]

The government is at fault they’re the ones that created this low interest environment now they have painted themselves into a corner by ignoring inflation for far too long. The biggest reason that housing got So High was because of low interest rates made bigger and more expensive houses affordable for people who otherwise wouldn’t be able to afford these houses. Land falls into the same category. If mortgage rates had stayed at 5% or more we wouldn’t of been in the $hit storm we’re about to experience.

Governments contributed to the low-interest rate environment, not just one, with the US being most influential currently with a lower interest rate than Canada.

It is easy to pick a scapegoat, however, the reasons are not that simplistic.

If Canada did not play the game, each of our financial situations would be worse off.

I believe the chicken will come home to roost, not only in Canada but elsewhere.

The impact on Canada needs to be on a relative basis and CAD has performed well against USD for the past six years and will likely outperform over the next several years.

[errolanderson]

Heavy. heavy selling tonite in financials. Cryptos appear collapsing. Liquidity concerns heard in China.

[jazz]

Quebec pension fund invested in crypto, and now losing big time on it.