The Monetary Framework Is in Emergency
On the off chance that somebody proposed to pay you to get the means to purchase a house could you rush in?
When banks’ interest rates on mortgages are currently in the negative, as they are in Japan, there would undoubtedly be a sense of caution.
This indicates that people who borrow money from financial institutions are receiving rewards. Why and how does it work are the questions.
The monetary circumstance on the planet is at emergency point yet one must be in the loop to see the value in it. The situation was never really resolved after the global financial crisis (GFC) a few years ago. Until now, when it is sufficiently serious that finance is a perilous issue, it was essentially brushed under the rug.
My job isn’t as a financial specialist yet somebody who is profound and in the loop that we are somewhat recently and all that in prescience is materializing.
This includes the end of the World Order and its foundational systems. Religion and finance are The Establishment’s two pillars, and both are falling apart.
The Great Financial Crisis (GFC) was brought on by lending to homebuyers in which the value of properties was greatly inflated and money was distributed to those who were unable to repay it. What then will transpire given that property values are skyrocketing and interest rates are so low—one and a half percent in Australia alone?
In Sydney, houses that were sold for a few thousand dollars 40 years ago are now selling for more than a million dollars, with some well above that amount.
In Sydney, a lot of houses are empty because foreign investors are waiting for their value to rise. The typical married couple is so desperate to purchase a home that their mortgage payments frequently exceed their means. This means avoiding essentials in order to pay the bills. It’s a situation that can’t last.
This is just one small example of the problems facing the financial sector because it is inevitable that home values will suddenly fall, as they did in the United States and elsewhere to start the Great Financial Crisis.
When it does, the financial institutions will be left with enormous debts that no one can pay back. Japanese banks are paying people to take out mortgages in an effort to stop that from happening.
The equivalent must before long occur in Australia and somewhere else assuming the air pocket is to kept float.
