Welcome to Eureka Street

back to site
Forgot your password?
Subscribe

Keywords: Debt

  • ECONOMICS

    Why we need new rules for money

    • David James
    • 23 August 2022
    4 Comments

    Now that it is becoming hard to avoid just how much trouble the global financial system is in, it is interesting to speculate about what should be done about it. The first thing to understand about the global financial system is that the assumptions that were used to shape it are demonstrably false.

    READ MORE
  • ENVIRONMENT

    How should Labor handle nuclear waste storage in SA?

    • Michele Madigan
    • 04 August 2022
    9 Comments

    With $1 trillion of debt accumulating over the last seven years in attempts to establish a National Radioactive Waste Management Facility, the new Labor Government is facing mounting pressure to rethink the nuclear waste storage plan for Kimba.  

    READ MORE
  • ECONOMICS

    Why debt forgiveness may be inevitable

    • David James
    • 25 July 2022
    3 Comments

    Monetary authorities are caught in an impossible situation. Inflation is rising: it is over 5 per cent in Australia and over 9 per cent in the United States. Inflation is often seen as a way out of excessive debt because it erodes the real value of money and therefore the real value of the debt. But what is increasingly being discussed are ways to cancel the debt.

    READ MORE
  • AUSTRALIA

    Deliver us from our necessities

    • Andrew Hamilton
    • 16 June 2022

    After the Election media focus has now switched from the fresh personalities and style of the new Government to the difficulties that face it. These include the financial pressures created by heavy debt and inflation, the constraints imposed by pledges made before the election, an energy crisis, international conflicts and their effects on trade, and differences within the Party. Faced by such challenges the Government is unlikely to be able to fulfil its promises and its supporters’ hopes.

    READ MORE
  • ECONOMICS

    Out-of-control house prices requires a different approach

    • David James
    • 11 May 2022
    4 Comments

    In purely economic terms, the upcoming Federal election is extremely unusual. The shut down of the Australian economy for almost two years because of health measures really has no precedent in our history. Only war can produce that type of shock. The Federal government’s financial response was as extreme as the state of emergency measures, including a sharp increase in Australian government debt. It remains to be seen, however, if the government gets much credit for injecting so much free money into the economy. It is unlikely.

    READ MORE
  • ECONOMICS

    A strange financial circus

    • David James
    • 12 October 2021
    4 Comments

    Over the last two years, money printing has created the illusion of strength in savings. But when reality resurfaces, and actual returns are required from actual economic and business activity, the global financial system will come under extreme stress. 

    READ MORE
  • ECONOMICS

    The battle for the future of money

    • David James
    • 07 September 2021
    4 Comments

    There is a three-way battle looming over the future of money and the stakes could scarcely be higher. Conventional money, mainly debt created by banks — the ‘folding stuff’ is only a tiny proportion of the total — is in trouble. Total global debt is now so large relative to the world economy it cannot be serviced, which is why monetary authorities have resorted to dropping interest rates. When they almost hit zero, the next step was quantitative easing (QE): printing money by getting the central bank to buy back government and corporate bonds and putting them on its ‘balance sheet’. 

    READ MORE
  • ECONOMICS

    Why inflation isn't higher

    • David James
    • 12 August 2021
    4 Comments

    The biggest mystery of the financial markets is why, when the monetary authorities have been printing money with their ears pinned back, is inflation for the most part not a problem? What happens with inflation is crucial to the short-term survival of the whole system. Global debt, which is running at well over 300 per cent of global GDP, is only sustainable because interest rates are exceptionally low (the base rate in Australia is only 0.1 per cent). And interest rates are low because inflation is not a problem.

    READ MORE
  • ECONOMICS

    Teetering on the financial brink

    • David James
    • 08 June 2021
    4 Comments

    An often overlooked fact about the financial system is that it entirely depends on trust. When trust starts to evaporate, especially between the big players such as banks and insurance companies, the whole artifice is put into peril. Trust in the system is now at an extreme low and that points to extreme danger.

    READ MORE
  • ECONOMICS

    Finance needs common sense, not cleverness

    • David James
    • 10 December 2020
    1 Comment

    The world’s financial markets are afflicted by a deep irrationality that imperils their very existence. On the surface, finance looks logical enough with its numbers, charts, mathematics, forecasts, ‘modelling’ and so on. But this only masks the fact that the system itself has been working on underlying assumptions that are either contradictory — such as that you can ‘deregulate’ finance when finance consists of rules — narrow minded or absurd.

    READ MORE
  • CARTOON

    The unhelping hand

    • Fiona Katauskas
    • 24 November 2020

    READ MORE
  • CARTOON

    Algorithm and blues

    • Fiona Katauskas
    • 17 November 2020
    1 Comment

    READ MORE