Author Topic: Woolworths (Australia) record loss  (Read 5316 times)

0 Members and 1 Guest are viewing this topic.

Offline VK3DRB

  • Super Contributor
  • ***
  • Posts: 1737
  • Country: au
Re: Woolworths (Australia) record loss
« Reply #25 on: September 03, 2016, 11:27:30 pm »
There was an economist Herbert Stein who coined the phrase "If something cannot go on forever, it will stop." That sounds perfectly reasonable to me.

So I probably lean to the doomsayer side but not based on any economic theories.

Speaking of Australia, and this is true of other places to some degree too, income levels are rising at historically low rates, but houshold debt is rising at a rate which cannot be sustained. Mostly it is high mortgage debt but also credit card debt. It has to stop sometime. The question is when. The next time it happens the standard response of lowering interest rates won't be available. Will printing even more money help? I'm skeptical. It doesn't seem to be working in Japan and Europe. Australia certainly can't afford to engage the US in a money printing war.

So what are you going to do? Hope the politicians and their economic advisers have an answer? Good luck with that.
The only rational response is to deleverage your houshold finances as fast as you can. But that is what leads to an economic slowdown. Which is just what you don't want if you want your home or investment property to continue to increase in value.

Head for the hills is not such a bad sounding option.

Printing more money will fix all our financial problems according to Pauline Hanson. How such a dingbat can become a Senator beats me. The worse thing that can happen is a massive solar flare wipes us out. The Internet stops. No food, no petrol, no money, power cutouts, no nothing. When your kids cannot eat, the gloves are off - its every man for himself. The person heading for the hills will be swamped, unless he headed out of reach from the nearest city. We have relied far too much on the Internet with no form of backup.

I agree there is far too much debt - govt and private. Both are primarily due to reckless government policies, not due to the Illuminati frogshit. If things got real bad, the government will simply raid people's Superannuation. The Cypriot government literally stole billions our of user's bank accounts. An ex-IBM colleague of mine ran a successful IT business in Zimbabwe, but Robert Mugabe and his henchmen stole ALL the money out of his business and private bank accounts overnight.

http://www.forbes.com/sites/steveforbes/2013/03/25/can-a-cyprus-like-seizure-of-your-money-happen-here/#258a50464fa4

Evenso, it is worth staying on the side of optimism, but be careful. What people forget is today we have instant communications of information, something the world did not have in 1930. Those communications stopped the end of the world in 1962 and probably several times since.
 


Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf