Yabby interest free home loans would see hyper-inflation destroy us.

I don't think you understand the gravity of the situation.This present situation is unprescidented.The West has lived off debt for too long.We virtually have no manufacturing base.The finanace sector is stuffed and the only jobs that exist are in discretionary service industries such as cleaning,lawn mowing,pooch washing,retail restaurants and fast foods.These jobs will evaporate when times get really tough.

In the Great Depression many people lived in the rural areas and we had a good manufacturing and farm sector base.They could grow their own food.People did not come out of hard times until after WW2.

Unless we get things right financially and prepare properly for worse case scenarios,total chaos could ensue.None of our Govts have a clue.The size of Govt must be cut drastically and spending must only be on productive enterprises and people in dire need.

With the IMF continuing in this vein and Kevin following oblivious to the outcomes ,it does not auger well for us all.Why borrow from the IMF when you can create your own cyber money?

Arjay, it is UOG who preaches no interest. It is against Islam.
So they charge you in other ways.

You are free to be all gloomy and doomy, I certainly am not. In fact
where I live, in WA, a bit of a slowdown would be a good thing,
things were totally overheated before.

Meat processors, farm equipment manufacturers etc, can now maybe
find workers once more. Things had become ridiculous. The army,
hospitals, even the policeforce could not find staff. I spoke
to a crew of power workers replacing old powerpoles last week.
Nearly the whole crew were from South Africa, making great money,
as Aussies did not want the jobs. We cannot even crew our own
submarines!

Manufacturing is certainly not stuffed in the West, it has just
changed, away from making cheap consumer goods.

Japan and China have manipulated their currencies for years, to
try and get an advantage. Now they might realise that holding
suitcases full of American $ might not be what they thought it
was.

Our house prices here are still far too high, in my opinion.

Recessions lead to restructuring and change and that is well overdue
in Australia.

yaBBY QUOTE<<,why should anyone give you money interest free?>>
why would govt borrow its OWN currency?
how does the fed get off taking govt bonds to issue a govt ITS OWN MONEY?

the issue isnt that we pay ursury BUT THAT GOVT DOES

http://www.google.com.au/search?ie=UTF-8&oe=UTF-8&sourceid=gd&q=creature+from+jeckle+island&hl=en-GB&rls=MEDA,MEDA:2008-36,MEDA:en-GB

bankers..STOLE GOVT's RIGHT TO ISSUE ITS OWN MONEY

today,govt issues a bond,offereing intrest to the fed,the fed issues their franchised exclusive fiat,and govt collects the fiat via taxes to repay a loan,any fiat returns to the fed,and the fed re-issues it or gives credit of their fiat to others

we didnt have tax pre fed fiat,..govts held gold and silver,but when the worlds feds took over the RIGHT to issue unlimeted fiat it stole the gold[and by 66 the silver from govt issued coin]

fed fiat was deemed legal tender,and only fed fiat,issued and controled by the fed..[the fed ruled over by banking cartels,and headed by the rothchild dynisty

that via unlimeted credit has bought up all the real assets[gold silver property and shares,and created mega corperations they control]

they used low ursury[low bank rates for their mates,and boom and bust to make the middle classes poor for the rest,your part of the rest]

>> Money devalues over time, due to inflation,so compensation is justified.>>MATE INFLATION IS WHEN THE FED CREATES too much fiat,ie it gets too greedy[cause people didnt return it to the bank[ie the fed]

BORROWING FIAT ONLY CREATES fiat-debt[to repay the ursury some one else needs to default..[thats all those who get bankrupted into poverty]

>>..interest free home loan,so that you can make a killing for yourself later on,all tax free?<<mate you think your going to be allowed to keep your home[you dont even have legal title to it..lol]

[your bank does it allows you to think you own it,but the plain reality is they do[they stil hold your mortgauge note[the one you signed to get your loan[did they return the origonal contract to you?[NO,they securitised it][thus you never get back its free and clear title]

>>Human greed knows no bounds...those who fail,
just blame the system<<...bankers are human..get it?

One under God,you certainly love debate and your passionate about the poor do you donate to any organisation like the salvos, doctors without borders etc, i do that way i can contribute in some way towards the injustices in the world.
There was mention of the Islamic Bank..they do lend to customers interest free, goodness me something outside the greedy banks i find it quite refreshing.
Footnote: rest assured i am not a conspirator and i dont run with the crowd either.
Happy debating old chap

Yabby,agree house prices are over inflated.Mine by at least $200,000.00 Young people are being enticed into buying again with Kevin's enticement of $20,000.00.This is pure folly by both govt and home buyers.This again is Govt not looking beyond the present.They should looking for ways of producing cheaper housing not inflating existing limited stocks

Just go to youtube and see the interview between Gerald Celente and Glen Beck. Celente predicted this mess.Celente is articulate,has good grasp of economics and logic you cannot flaw.

I hope too as Glen Beck said,"I hope to God that you are wrong!"

Arjay, I don't do Utube, as I have mobile broadband where I live,
which means 1Gig per month. Many people predicted a mess,
even the Economist went on about it for years. The thing is,
many things have now finally come together and need unwinding and
sorting out. As Warren Buffett says "Its only when the tide goes out,
that we see who is swimming naked"

General Motors and Chrysler have been hovering on the verge of bankrupcy for ages.
This present situation is bringing things to
a head much quicker. The US Steel industry went through a similar
crisis some twenty years ago, it came out meaner, leaner
and stronger. Detroit needs to do the same. 75 US$ an hour for
labour costs, is simply not sustainable.

Everyone is blaming banks, but in fact the largest losses have
been sustained by an insurance company, AIG. It was not even their
insurance business that was the problem, but a small derivatives
trading division in London, that sustained all the losses.

So called "investment banks", as those who did crash, are not really
banks at all, but money trading houses. Quite different from
your everyday deposit bank, of which there are roughly 8000 in the
US.

You are correct about houses and Kevin is just putting sticky tape
on the problem for electoral gain, not dealing with the core of the
problem.

Fact is that because Australians have no incentive to save, our
banks have to find half their funds overseas at much higher cost.
Domestic interest rates might be low and banks have been put under
pressure to lend that out for cheap housing loans. But they are
paying higher rates for money from overseas, to lend to business
customers, farmers etc, who don't have the political pressure, so
pay through the nose. You can't blame the banks either, if
overseas funds cost them 8%, they can't lend it out for 6%.

But all this is papered over in the name of politics, it is not
dealing with the fundamental problem at hand.