4 ms·

Nothing stops the tide. The pressures of systems like this build up until not even the government can stop it. The biggest dam in the world cannot stop dead in

Nothing stops the tide. The pressures of systems like this build up until not even the government can stop it. The biggest dam in the world cannot stop dead in it's tracks even the tiniest trickle of water. Something will give, could be the entire financial system collapses, could be guillotines, but the government is not omnipotent.

marcosdumay 3y ago
> Something will give Usually, the government soft-fails through inflation and deflates the bubble.
- anon1199022 3y ago
  Until their currency collapses. Each nation lost their currency for many times, no exception :)
- betaby 3y ago
  Not sure. Any historical example for housing specifically.
- friend_and_foe 3y ago
  But Australia can't do that with their housing market. If they try, prices just go up. Real estate is monetized, people need to park their devaluing dollars somewhere. The more they try, the more they price their own people out of their own country.
  - cwalv 3y ago
    > If they try, prices just go up. It depends on the unit prices are measured in. They may go up, or tread sideways in AUD, but that doesn't mean they're actually appreciating
pixl97 3y ago
Even these kind of collapses work out better for the rich than the poor.
- cwalv 3y ago
  Maybe, if they "see" it coming and hedge accordingly. But in general, inflation works in favor of debtors against savers
  - pixl97 3y ago
    Generally when the debtor goes into bankruptcy they give up the asset. Some other 'wealthy' person buys up the for pennies on the dollar. So while a particular rich person loses, in general the wealthy come out ahead.
    - cwalv 3y ago
      Inflation enables debtors to default in real terms while still meeting their contractual obligations. They (er, we) end up paying debts back with money that's worth less, assuming we remain solvent in nominal terms (as the govt, currently a very large debtor, is guaranteed to do)

marcosdumay 3y ago

> Something will give Usually, the government soft-fails through inflation and deflates the bubble.

anon1199022 3y ago
Until their currency collapses. Each nation lost their currency for many times, no exception :)
betaby 3y ago
Not sure. Any historical example for housing specifically.
friend_and_foe 3y ago
But Australia can't do that with their housing market. If they try, prices just go up. Real estate is monetized, people need to park their devaluing dollars somewhere. The more they try, the more they price their own people out of their own country.
- cwalv 3y ago
  > If they try, prices just go up. It depends on the unit prices are measured in. They may go up, or tread sideways in AUD, but that doesn't mean they're actually appreciating

pixl97 3y ago

Even these kind of collapses work out better for the rich than the poor.

cwalv 3y ago
Maybe, if they "see" it coming and hedge accordingly. But in general, inflation works in favor of debtors against savers
- pixl97 3y ago
  Generally when the debtor goes into bankruptcy they give up the asset. Some other 'wealthy' person buys up the for pennies on the dollar. So while a particular rich person loses, in general the wealthy come out ahead.
  - cwalv 3y ago
    Inflation enables debtors to default in real terms while still meeting their contractual obligations. They (er, we) end up paying debts back with money that's worth less, assuming we remain solvent in nominal terms (as the govt, currently a very large debtor, is guaranteed to do)