Australia’s Debt Bomb….

29 06 2018

Last night on ABC TV News, during the financial report section, Philip Lasker dropped a bombshell that almost nobody noticed…..  It starts getting interesting about half way through the video clip below..:

http://www.abc.net.au/news/business/kohler-report/

Home lending almost accounts for 80% of the national economy. At first, I nearly fell off my chair…….  surely not?  But of course dear reader it all makes sense….  after all, the economy is measured in money throughput, and when that money is almost completely created as debt, of course the economy consists of debt…. and as more and more business no longer produces anything worthwhile, people are turning to borrowing to buy real estate, and, most likely, stocks too.

A housing downturn seems to have started, and it won’t take much to bring the whole house of cards down in a huge pile of worthless money.

How much longer can this keep going?  I hope long enough for me to get my house in order……  Please please can I have another 12 months….