PROPERTY AND THE DEFICIT
16 Oct 2020
Generally when money is pumped into the economy, it ends up in real estate. There is no other market big enough to absorb it. We are seeing this every Saturday. While interest rates are down and inflation low what else do Governments expect!
There is not a problem yet in the Government handling the debt going forward, as again the rates they are paying are so low.
So far the Government has sold bonds to the market to finance the spending. Now Keating and others want the RBA to buy the bonds!!
That is a different story and really is printing money.