It didn't really help Europe. I think the pendulum swing left and right over time is from loose money and cheap debt. When rates rise people vote right, then they vote left for unfunded spending, and the cycle continues. But that's just my estimation of what's going on.
turnip
joined 1 month ago
I assume because we haven't diversified our exports and are fully dependent on the US.
Even when Germany begged for our natural gas the Liberals decided against it, and the US filled the demand instead.
Now people will move to a place where their data is monetized and their speech is curated.
They fade away after a day regardless.
House prices rise to max out available credit. If that credit vanishes then prices will fall, as people need to save their own money to buy, and they don't benefit from the cantillon effect raising asset values.
House prices are inversely correlated with interest rates, and housing bubbles popup wherever QE is done as a mortgage is a net short position on the purchasing power of cash.
We'll touche, definitely weird to be talking about sending prisoners to El Salvador.
Though these terrorist laws were always going to be abused.
Demographics falling is bad because of inflation targeting. Everyone must consume 2% more this year than they did last year, so the money supply must grow dramatically as demographics age and spending slows.
The mortgage then acts as a gatekeeper in our fiat system, by locking up an inelastic good necessary for survival and procreation behind a paywall that scales with low interest rates, and can only be unlocked by taking on a mortgage and completing the payment obligations. This ensures that the financial system has a steady stream of obligations that help sustain the flow of currency, every new mortgage is new money supply that benefits existing asset holders.
What we need is to get rid of mortgages. People then need to pay cash or rent, no cheap loans, all loans go toward productivity investment and startups. The government can then build high density rentals near mass transit.
No, we should have rich students who can afford to live here without food bank usage. Which is what the government stipulated as well, before they began to borrow money to cheat the system.