What does it mean if the "debt bubble" bursts?

Thrugelmir

FatherAbraham wrote: »

It's not like the existence of "the debt bubble" is even certain,

A reality that many ignore as it's not front page news. One day the chickens will come home to roost.

Carrieanne

The Bank of England was created in 1694 and for the next 315 years the base rate never fell below 2% at any point. Then for the past 10 years its been under 1%. And yet when the humongous worldwide debt bubble meets its pin so many will exclaim that no-one could have foresaw the implosion. Perhaps the base rate here, in ECB land and over the pond in the US will need to go to 0% or even negative before people catch on to what's afoot.

Car maker Henry Ford the best part of a century ago didn't need a crystal ball to know what the future held. Here's his most famous quote: “The one aim of these financiers is world control by the creation of inextinguishable debts.”

Malthusian

Carrieanne wrote: »

Car maker Henry Ford the best part of a century ago didn't need a crystal ball to know what the future held. Here's his most famous quote: “The one aim of these financiers is world control by the creation of inextinguishable debts.”

Car maker and notorious anti-Semite Henry Ford?

Hating the Jews isn't going to get you rich quick.

Carrieanne

This coronavirus affair is shaping up to be the catalyst for worldwide economic doom leading to collapse and bursting of the monolithic debt bubble.

Either China's been fibbing about the number of infections and deaths amongst its population thus far or its containment measures are ridiculously excessive. With China's economy responsible for 17% of the globe's GDP then its hibernation would immediately impact supply chains.

I spent some time over the past days viewing street cams situated in Beijing, Shanghai and elsewhere and usually bustling areas were virtually deserted.

Malthusian

Carrieanne wrote: »

Either China's been fibbing about the number of infections and deaths amongst its population thus far or its containment measures are ridiculously excessive. With China's economy responsible for 17% of the globe's GDP then its hibernation would immediately impact supply chains.

Most deaths due to Bird Flu IV are among the elderly and already ill, who don't work in China's supply chains.

It is highly likely China's measures are ridiculously excessive. It's a communist dictatorship. Birds fly, fish swim, communist dictatorships take ridiculously excessive measures.

Besides, I thought Trump had already caused worldwide economic doom a year and a half ago.

Thrugelmir

Malthusian wrote: »

It is highly likely China's measures are ridiculously excessive. It's a communist dictatorship. Birds fly, fish swim, communist dictatorships take ridiculously excessive measures.

Official news in China is filtered as under state control. Playing down the outbreak has proven to be a major error of judgement. Published GDP figures are questionable. In most analysts views consistantly overstated.

C_Mababejive

If debt is so cheap,should we consider a chunk of debt as part of an overall strategy?

Thrugelmir

C_Mababejive wrote: »

If debt is so cheap,should we consider a chunk of debt as part of an overall strategy?

What would you do with the cash ?