In today’s Daily Reckoning Australia, for decades we’ve borrowed money to goose GDP. But it didn’t work very well. Debt outgrew GDP. And now debt-to-GDP ratios are at unaffordable levels. With bond markets wobbling, is the solution to borrow less? Well, what’d that do to GDP? Read on to find out…
Big companies, as well as little ones, are now sweating their interest payments. Some of them already face interest charges north of 10% — which is a lot to pay for a struggling business. One by one…tiny cracks will appear. And then, like the proverbial bull in a china shop, Mr Market will stomp on them all.
Last week, investors began to see what is headed their way. For most of the year, they’ve been in denial. Stocks go down; they buy the dip. And then, they go down again. But that only brings the same reflex. Their investment strategy was simple. BTFD, they say — ‘Buy the F…ing Dip’.
In today’s Money Morning, it tends to be that the most likely outcomes are the ones no one expects. Central banks are raising rates to combat inflation, but what if that’s having the exact opposite effect? What if it isn’t demand that’s driving prices up? If so, that spells opportunity for Australia…
Have you got an inflation problem, Australia? If you want to solve it, I know a guy…
He’d laugh at our pitiful 6.8% inflation rate. Try 29,500% a month.
In natural, vernacular languages, people say what they want…and the language evolves along with the society it serves. But in an anti-vernacular language, such as Esperanto, a small group can determine the rules for everyone.
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