Magpie_Magic
Well-known member
That's what happened.You use government spending to grow and inflate the economy as was done (or at least as occurred) in the post-WW2 period.
Trouble is till the 70s personal debt levels were low and a house in Sydney was say 20k freestanding and average wages 5k in say 71. Governments had accrued WW2 debt but with the gold standard there was real currency value.
Once Nixon left the gold standard interest rates commenced their ascent to 20% in 81. Remember the 80s real well they wouldn't fix a pothole on the road let alone spend.
And this is worse now with much higher public and private levels of debt rising rates and little asset backing for currencies.
If they go more QE then they run the risk of seeing capital flight into the Wests competitor's and also Cryptocurrencies.
We may have a chance as commodities rise drawing capital. But I suspect if we stand out as being too successful amongst western nations we will be forced to spend on a huge military budget helping our allies.
So not much joy.