The chart above doesn’t have the most recent data. It appears to show a gentle decline in the household debt-to-disposable income ratio. Since then, though, due to higher debts and income growth that’s not quite kept up, the ratio has turned up again. It’s around 156% today…
February 3rd, 2010 | Dan Denning | 127 comments | ContinuedAll Posts Tagged With: "bank assets"
Inflation is Evident If You Just Follow the Money
One quick note about this: there is obviously plenty of inflation in the prices you pay every day. But most consumer price indices are rigged to understate inflation, as our colleague David Evans pointed out yesterday in Canberra at the Gold Standard Institute conference in Canberra. Trimmed medians…hedonic adjustments…
November 2nd, 2009 | Dan Denning | 5 comments | Continued
Can Governments and Central Banks Prevent More Credit Writedowns?
Are we changing our tune, then, about what to expect from markets? Not one bit. But the question now is timing. The collapse of 2008 was so severe because of the sudden reduction in leverage in the financial sector. As assets fell in value, the most highly leveraged firms (or lenders who raised money by selling debt) went out of business.
October 12th, 2009 | Dan Denning | 34 comments | Continued
Aussie Gold Price Moves Up
For investors, it means gold is going to have a good solid run at US$1,000. It’s in the neighbourhood already. But in the lead up to the G-20 leader meeting in Pittsburgh later this month, we wouldn’t be surprised to see gold price in a lot more fiat money creation.
September 7th, 2009 | Dan Denning | 15 comments | Continued
Global Credit Shortage is Over According to European Central Bank
That all sounds like common sense. So why are so few policy makers using their head? The people who hope the global economy can be revived through a resumption of credit growth seem to forget that it was massive credit growth that created the problem (massive global imbalances, huge debt levels, and mal-investments) in the first place.
July 23rd, 2009 | Dan Denning | 2 comments | Continued
