The Global Financial Crisis in 2008 was centred on the world having too much debt and yet today there is even more debt and more inequality. We all feel something isn’t right with the world, but the game keeps playing. We simply cannot keep borrowing more, even with low interest rates. Eventually it doesn’t matter […]
Fiat money is paper money that comes into existence by government law. It is not valued to any ‘objective standard’ like gold or silver, so governments can produce as much money as they like. When you hear the expression ‘printing money’, that’s what is being referred to. The widely held view amongst economists is that […]
So much stimulus, and yet no growth and negligible inflation. We are overloaded with debt, so lowering interest rates and encouraging people to borrow is not a sustainable economic strategy. It’s like giving beers to an alcoholic. In the movie of the same name, Morpheus eludes to the existence of the matrix, “You know something […]
It isn’t always easy to release equity when selling property. I had a client recently who intended to sell a property and retain the equity. It was needed to cover the cost of resource consent for another property he wanted to develop into town houses. But the bank was uncomfortable with his overall level of […]
