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Too Much Debt - Have we gone beyond the point of no return?

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I went to a talk the other day and the speaker was talking out QE (Quantitative easing - printing out money). This printing out of money is creating trillions of dollars of debt, money which apparently is never to be repaid but to keep people in financial slavery.

The speaker went on to say that they have printed too much money, so much so that it's now gone beyond the point of no return.

If this is the case, what is the outlook for the world share markets and our share market.
 

CanOz

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I went to a talk the other day and the speaker was talking out QE (Quantitative easing - printing out money). This printing out of money is creating trillions of dollars of debt, money which apparently is never to be repaid but to keep people in financial slavery.

The speaker went on to say that they have printed too much money, so much so that it's now gone beyond the point of no return.

If this is the case, what is the outlook for the world share markets and our share market.
But from what i have read from other members here that is not quite true. The US has actually attempted to invert the yield curve, keeping rates low by driving down long bond rates...now they did this and still didn't increase their balance sheet by more than the historical amount, contrary to what some say. Now the long bond yields are rising, or were. This indicates that their strategy is working, interest rates should start to gradually increase as they "taper off" their bond buying and the economy gradually recovers....This should also cause a rotation out of bonds further into equities...or other asset classes in search of higher yields.

Hopefully Whitey will chime in and fix up my poor articulation.

Anyway, its related to the curve!:D

CanOz
 
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interest rates should start to gradually increase as they "taper off" their bond buying and the economy gradually recovers...
I assume the assumption is that the economy recovers. I cannot see it recovering and interest rates going up personally. From such a low interest rate base any small increase turns into a large % increase.

Again, the assumption being that the methodology being employed in the US will lead to a recovery. I am lost to how the interest will ever be repaid, but will be a continued drag on any recover.

In essence I don't think anyone has a f----king clue including myself.
 

CanOz

Home runs feel good, but base hits pay bills!
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I assume the assumption is that the economy recovers. I cannot see it recovering and interest rates going up personally. From such a low interest rate base any small increase turns into a large % increase.

Again, the assumption being that the methodology being employed in the US will lead to a recovery. I am lost to how the interest will ever be repaid, but will be a continued drag on any recover.

In essence I don't think anyone has a f----king clue including myself.
Well its never been done before, uncharted waters....and it seems all the G7 want to be in debt, so no one economy is left holding the bag....
 
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Debt will get repaid once the government returns it's budget to surplus. Not a question of if it can, it's a question of when and if necessary.

Debt's only a problem when your creditors won't lend you any more money. When one of your creditors is a central bank than it's not too much of an issue. So everyone outside the Eurozone isn't in too much of a pickle.

Only question is how much living standards decline with the loss in purchasing power through FOREX or inflation.
 

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