topic Re: Australian Private Debt in Community Spirit

Australian Private Debt

icyfroth — Mon, 12 Jan 2015 06:06:48 GMT

Australian private debt points to a potential financial crisis

Australia’s private sector is grossly over-indebted, especially the household sector. The hysteria surrounding Australia’s non-existent public budget ‘emergency’ is a smokescreen cloaking the critical household budget crisis.

The fictional narrative concerning public debt arises from an unshakeable adherence to pseudo-scientific economic theory and class war, such as ‘justified’ public austerity policies which target the poor and marginalised.

Meanwhile, the public is distracted from the true threat: the unrestrained private spending spree that further enhance the power, profit and authority of the horde of private monopolists, usurers, speculators, rent seekers, free riders, financial robber barons, control frauds and indolent rich.

The current dynamics of the political and economic system means private debts will continue to spiral out of control, until the catastrophically-inefficient FIRE sector inevitably implodes.

Nevertheless, the current housing booms in Melbourne and Sydney show no sign of abating in the short-term, with 2012 an opportune time to purchase according to the ‘Speculative Index’, which measures the irrational exuberance embedded in prices.

If the real estate fever gripping the nation does not break soon, Australia may well secure the top OECD ranking for the most over-indebted household sector.

A financial crisis beckons, for history documents that extraordinary over-lending routinely precipitates chaos; falsifying expert claims that ‘this time is different’.

Entire Article Here

Note to self: must make more of an effort to pay off my credit cards.

Re: Australian Private Debt

boris1gary — Mon, 12 Jan 2015 07:09:33 GMT

posted this months ago but maybe you missed it, much longer article than what I have posted.

https://independentaustralia.net/politics/politics-display/abbott-government-ignores-australias-actual-debt-crisis,7010

Private Debt

Private debt is composed of loans issued by lenders to the household, non-financial and non-banking financial sector.

It grew exponentially between 1964 and 2008, fuelling the mid-1970s dual commercial and housing real estate bubbles, the early 1980s Sydney housing bubble, the late 1980s dual commercial and housing bubble, and today’s colossal housing bubble and associated commercial property bubble.

The historic peaks in the non-financial business debt ratio match the commercial bubbles of the 1880s, 1920s, mid-1970s, late 1980s and 2008. Non-financial business debt has yet to reach the previous peak of 70.2% set back in 1893. After WW2, accelerating household debt financed housing bubbles during the same periods. The household debt ratio has experienced a remarkable rise over the last two decades, driving the largest housing bubble in Australia’s recorded history.

In the lead-up to the GFC, non-banking financial sector debt rapidly increased, reaching a peak of 116.1% in 2008, before deleveraging.

The consolidated private gross debt to GDP figure shown below is a new and novel insight, as it includes for the first time the previously-unexamined non-banking financial sector debt. Unfortunately, this series only begins in 1989.

Re: Australian Private Debt

icyfroth — Mon, 12 Jan 2015 08:34:50 GMT

ok you win lol

Re: Australian Private Debt

cherry*135 — Mon, 12 Jan 2015 09:22:05 GMT

credit cards.

Yikes

Re: Australian Private Debt

icyfroth — Mon, 12 Jan 2015 09:27:18 GMT

Yeah well these are the debts one HAS to pay back

Re: Australian Private Debt

fourandsixpants — Mon, 12 Jan 2015 09:28:44 GMT

yes Boris. I have also bantered on and on about this serious issue over the last few weeks, posting several excerpts from various authors........some people just don't pay attention to important matters when they should imo.

Re: Australian Private Debt

fourandsixpants — Mon, 12 Jan 2015 09:32:19 GMT

some people should not be given credit at all.....then begs the question :

What happens when people cannot repay their credit debt?........because their credit debt is HUGE

I do not have a credit card myself.

Re: Australian Private Debt

icyfroth — Mon, 12 Jan 2015 09:38:53 GMT

@paintsew007 wrote:
some people should not be given credit at all.....then begs the question :

What happens when people cannot repay their credit debt?........because their credit debt is HUGE

they go into bankruptcy

I do not have a credit card myself.

not everyone is creditworthy

Re: Australian Private Debt

aps1080 — Mon, 12 Jan 2015 09:40:51 GMT

@icyfroth wrote:
Yeah well these are the debts one HAS to pay back

Icy

Unlike some who think it is a never ending interest free loan and then kick up a stink when the hint

of benng charged more comes along, 10 years later !

Re: Australian Private Debt

icyfroth — Mon, 12 Jan 2015 09:48:00 GMT

@aps1080 wrote:
@icyfroth wrote:
Yeah well these are the debts one HAS to pay back

Icy

Unlike some who think it is a never ending interest free loan and then kick up a stink when the hint
of benng charged more comes along, 10 years later !

You got it,

Re: Australian Private Debt

fourandsixpants — Mon, 12 Jan 2015 09:51:00 GMT

Talking to yourself again LOL

Re: Australian Private Debt

aps1080 — Mon, 12 Jan 2015 09:57:01 GMT

@paintsew007 wrote:
Talking to yourself again LOL

No actually, we were having a conversation about people who winge non stop about what the Gov't is doing

but never seem to be in a hurry to pay back the debt to the Gov't that they owe.

Re: Australian Private Debt

icyfroth — Mon, 12 Jan 2015 10:07:35 GMT

@aps1080 wrote:
@paintsew007 wrote:
Talking to yourself again LOL
No actually, we were having a conversation about people who winge non stop about what the Gov't is doing
but never seem to be in a hurry to pay back the debt to the Gov't that they owe.

Not only not in a hurry but don't have to so they won't.

Re: Australian Private Debt

icyfroth — Mon, 12 Jan 2015 10:12:03 GMT

@paintsew007 wrote:
Talking to yourself again LOL

oh have you seen one of my supposed errant alter-ID's?

Please send it home.

Show it the way along the chemtrails thx.

Re: Australian Private Debt

aps1080 — Mon, 12 Jan 2015 10:12:43 GMT

Yes, I just noticed that on the other thread.

Clearly NO intention, EVER.

Re: Australian Private Debt

fourandsixpants — Mon, 12 Jan 2015 11:32:33 GMT

I thought this thread was about Australian Private Debt.

Crazy antagonist, personally targeted and nasty comments so far!....guess that's all they have LOL

pathetic......just like their same attempts in responses on other threads

Re: Australian Private Debt

zanadoo_56 — Mon, 12 Jan 2015 13:05:00 GMT

Good grief. I think that article was written by someone who had swallowed every bit of boring business terminology in the book....and then some.

As for credit cards.....I don't like them. I much prefer a debit card and if I don't have the money for something frivolous I'll save up for it. I'm really old school I guess.

Re: Australian Private Debt

icyfroth — Mon, 12 Jan 2015 19:55:33 GMT

@paintsew007 wrote:
I thought this thread was about Australian Private Debt.

I started out that way.

Crazy antagonist, personally targeted and nasty comments so far!....guess that's all they have LOL

Yeah I know and they all invaded this thread over from the stinking thread.

pathetic......just like their same attempts in responses on other threads

Yeah. Oh well. Give's em something to do I suppose.