{"id":11804,"date":"2015-05-12T20:14:53","date_gmt":"2015-05-13T00:14:53","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=11804"},"modified":"2015-05-12T20:14:53","modified_gmt":"2015-05-13T00:14:53","slug":"federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/","title":{"rendered":"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye"},"content":{"rendered":"<p>Chris Joye (AFR) on the budget deficit: <\/p>\n<blockquote><p>There are two critical differences in 2015 that make Australia&#8217;s current debt burden [42.2% of GDP] much more troubling than that serviced by previous generations. Back in the 1977 and 1983 recessions, the household debt-to-income ratio was only 34 per cent and 37 per cent, respectively. Even in the 1991 recession, it was just 48 per cent, which is one reason why home loan arrears were so benign. Yet by 2015, the household debt-to-income ratio had jumped 3.2 times to an incredible 154 per cent, which is above its pre-GFC climax because families haven&#8217;t deleveraged&#8230;.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"Public Debt to GDP and Household Debt to Income\" title=\"Public Debt to GDP and Household Debt to Income\" src=\"https:\/\/i0.wp.com\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png?w=525\" \/>\n<\/p><\/blockquote>\n<p>Public and private debt levels are important to our economic health, but where the money is borrowed domestically it is far less serious than when it is borrowed offshore. In the former case, net debt in the economy is effectively zero &#8212; one sector runs a surplus while the other runs a deficit &#8212; but where money is borrowed offshore, the nation as a whole becomes a net debtor. Which is why short-term borrowing in international markets by Australian banks &#8212; used to fund the housing bubble in the run up to the GFC &#8212; was so dangerous.<\/p>\n<p>From Greg McKenna (House &amp; Holes) at Macrobusiness:<\/p>\n<blockquote><p>&#8220;&#8230;.The funding gap is estimated to be $600 billion. In a speech on Friday, Westpac deputy chief executive Phil Coffey cited research from PwC which estimated the gap could grow to $1.325 trillion if there was a pick-up in credit growth.&#8221;<\/p>\n<p>Here is the latest chart from the RBA showing the rising borrowing, it\u2019s quarterly and likely lagging:<\/p>\n<p><img data-recalc-dims=\"1\" height=\"209\" width=\"300\" decoding=\"async\" class=\"aligncenter\" alt=\"International Liabilities of Australian Banks\" title=\"International Liabilities of Australian Banks\" src=\"https:\/\/i0.wp.com\/www.macrobusiness.com.au\/wp-content\/uploads\/2014\/06\/erteq-300x209.png?resize=300%2C209\" \/><\/p>\n<p>Notice how the article is focused entirely upon the \u201cfunding gap\u201d as a tactical challenge in which the banks are innocent players. In reality there is no \u201cfunding gap\u201d. Rather, our financial system is addicted to unproductive mortgage-lending and that crowds out the kind of business lending that would generate income growth and local savings. The \u201cfunding gap\u201d is created by the banks not serviced by them.<\/p><\/blockquote>\n<p>International borrowing to fund a domestic property bubble is double trouble.<\/p>\n<p>Read more at <a href='http:\/\/www.afr.com\/news\/policy\/budget\/federal-budget-2015-worst-cumulative-deficits-in-60-years-20150512-gguuug'>Federal budget 2015: worst cumulative deficits in 60 years | afr.com<\/a>.<\/p>\n<p>And at <a href=\"http:\/\/www.macrobusiness.com.au\/2014\/06\/australia-ramps-the-risk-as-banks-borrow-abroad\/\" title=\"Macrobusiness: Australia ramps the risk as banks borrow abroad\" target=\"_blank\">Macrobusiness: Australia ramps the risk as banks borrow abroad<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chris Joye (AFR) on the budget deficit: There are two critical differences in 2015 that make Australia&#8217;s current debt burden [42.2% of GDP] much more troubling than that serviced by previous generations. Back in the 1977 and 1983 recessions, the household debt-to-income ratio was only 34 per cent and 37 per cent, respectively. Even in &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,45],"tags":[290,1494,1869,2766,2798,2799,2808],"class_list":["post-11804","post","type-post","status-publish","format-standard","hentry","category-australia-nz-countries-regions","category-debt-levels","tag-australia","tag-funding-gap","tag-international-liabilities-of-australian-banks","tag-private-debt","tag-property-boom","tag-property-bubble","tag-public-debt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Chris Joye (AFR) on the budget deficit: There are two critical differences in 2015 that make Australia&#8217;s current debt burden [42.2% of GDP] much more troubling than that serviced by previous generations. Back in the 1977 and 1983 recessions, the household debt-to-income ratio was only 34 per cent and 37 per cent, respectively. Even in &hellip; Continue reading &quot;Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2015-05-13T00:14:53+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye\",\"datePublished\":\"2015-05-13T00:14:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/\"},\"wordCount\":364,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png\",\"keywords\":[\"Australia\",\"funding gap\",\"International Liabilities of Australian Banks\",\"Private Debt\",\"property boom\",\"property bubble\",\"public debt\"],\"articleSection\":[\"Australia &amp; NZ\",\"Debt Levels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/\",\"name\":\"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png\",\"datePublished\":\"2015-05-13T00:14:53+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#primaryimage\",\"url\":\"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png\",\"contentUrl\":\"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. Strategic. Unfiltered. \",\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/thepatientinvestor.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\",\"name\":\"The Patient Investor Pty Ltd\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"width\":250,\"height\":250,\"caption\":\"The Patient Investor Pty Ltd\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\",\"https:\/\/www.instagram.com\/colin_thepatientinvestor\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\",\"name\":\"ColinTwiggs\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"caption\":\"ColinTwiggs\"},\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye - the patient investor","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye - the patient investor","og_description":"Chris Joye (AFR) on the budget deficit: There are two critical differences in 2015 that make Australia&#8217;s current debt burden [42.2% of GDP] much more troubling than that serviced by previous generations. Back in the 1977 and 1983 recessions, the household debt-to-income ratio was only 34 per cent and 37 per cent, respectively. Even in &hellip; Continue reading \"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye\"","og_url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/","og_site_name":"the patient investor","article_publisher":"https:\/\/www.facebook.com\/profile.php?id=61572934660810","article_published_time":"2015-05-13T00:14:53+00:00","og_image":[{"url":"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png","type":"","width":"","height":""}],"author":"ColinTwiggs","twitter_card":"summary_large_image","twitter_misc":{"Written by":"ColinTwiggs","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#article","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/"},"author":{"name":"ColinTwiggs","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5"},"headline":"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye","datePublished":"2015-05-13T00:14:53+00:00","mainEntityOfPage":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/"},"wordCount":364,"commentCount":1,"publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"image":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#primaryimage"},"thumbnailUrl":"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png","keywords":["Australia","funding gap","International Liabilities of Australian Banks","Private Debt","property boom","property bubble","public debt"],"articleSection":["Australia &amp; NZ","Debt Levels"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/","url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/","name":"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye - the patient investor","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#primaryimage"},"image":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#primaryimage"},"thumbnailUrl":"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png","datePublished":"2015-05-13T00:14:53+00:00","breadcrumb":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#primaryimage","url":"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png","contentUrl":"http:\/\/www.afr.com\/content\/dam\/images\/g\/h\/0\/9\/n\/y\/image.imgtype.afrArticleInline.620x0.png\/1431466233692.png"},{"@type":"BreadcrumbList","@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/05\/12\/federal-budget-2015-worst-cumulative-deficits-in-60-years-chris-joye\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/thepatientinvestor.com\/"},{"@type":"ListItem","position":2,"name":"Federal budget 2015: worst cumulative deficits in 60 years | Chris Joye"}]},{"@type":"WebSite","@id":"https:\/\/thepatientinvestor.com\/#website","url":"https:\/\/thepatientinvestor.com\/","name":"The Patient Investor","description":"Smart. Strategic. Unfiltered. ","publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/thepatientinvestor.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/thepatientinvestor.com\/#organization","name":"The Patient Investor Pty Ltd","url":"https:\/\/thepatientinvestor.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/","url":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","contentUrl":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","width":250,"height":250,"caption":"The Patient Investor Pty Ltd"},"image":{"@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/profile.php?id=61572934660810","https:\/\/www.instagram.com\/colin_thepatientinvestor"]},{"@type":"Person","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5","name":"ColinTwiggs","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","caption":"ColinTwiggs"},"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-34o","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":9323,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/03\/03\/deflating-australias-land-bubble\/","url_meta":{"origin":11804,"position":0},"title":"Deflating Australia\u2019s land bubble","author":"ColinTwiggs","date":"March 3, 2014","format":false,"excerpt":"Great post by Leith van Onselen Reproduced with kind permission from Macrobusiness.com.au. Prosper Australia has provided a submission to the Senate Inquiry into Housing Affordability, which is well worth a look. The submission first provides nine metrics illustrating Australia\u2019s residential property bubble, which include the following: It took forty years\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"ScreenHunter_18 Jul. 05 10.22","src":"https:\/\/i0.wp.com\/www.macrobusiness.com.au\/wp-content\/uploads\/2014\/03\/ScreenHunter_18-Jul.-05-10.22-200x200.gif?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8122,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/17\/canadian-housing-bubble-looks-ripe-for-popping-toronto-star\/","url_meta":{"origin":11804,"position":1},"title":"Canadian housing bubble looks ripe for popping | Toronto Star","author":"ColinTwiggs","date":"July 17, 2013","format":false,"excerpt":"Adam Peterson writes the Canadian housing bubble is headed for a \"slow-motion\" crash: My gravest concern is that Canada is fast approaching a 5:1 home-price-to-income ratio, a benchmark achieved by the U.S. at the peak in 2006. Since the correction, the U.S. ratio now hovers at approximately 3:1.To compound the\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41226,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/03\/14\/volatility-how-does-australia-compare\/","url_meta":{"origin":11804,"position":2},"title":"Volatility: How Does Australia Compare?","author":"Colin Twiggs","date":"March 14, 2023","format":false,"excerpt":"Last week we covered suppression of volatility in complex systems and showed how Fed suppression of interest rate has destroyed productivity, causing debt to grow at a faster rate than GDP. Quick Recap The ratio of federal government debt increased to a precarious 121% of GDP at the end of\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"Federal Government Debt & Non-Financial Private Debt\/GDP","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-07-debt-gdp.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-07-debt-gdp.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-07-debt-gdp.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":10764,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/08\/28\/banks-hold-more-risk-than-before-gfc-chris-joye\/","url_meta":{"origin":11804,"position":3},"title":"Banks hold more risk than before GFC | Chris Joye","author":"ColinTwiggs","date":"August 28, 2014","format":false,"excerpt":"Chris Joye explains why risk-weighted capital ratios used by Australia's major banks are misleading and why true leverage is more than 20 times tier 1 capital. It was only after 2008 when regulators allowed the majors to slash risk-weightings on home loans from 50 per cent to 15 per cent\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"Tier 1 Capital to Gross Assets","src":"https:\/\/i0.wp.com\/www.afr.com\/r\/AFR\/Blogs\/christopher_joye\/201408\/Images\/APRA3.png?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.afr.com\/r\/AFR\/Blogs\/christopher_joye\/201408\/Images\/APRA3.png?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.afr.com\/r\/AFR\/Blogs\/christopher_joye\/201408\/Images\/APRA3.png?resize=525%2C300 1.5x"},"classes":[]},{"id":15132,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/04\/09\/why-we-need-to-worry-about-the-level-of-australian-household-debt\/","url_meta":{"origin":11804,"position":4},"title":"Why we need to worry about the level of Australian household debt","author":"ColinTwiggs","date":"April 9, 2017","format":false,"excerpt":"From Elizabeth Knight: The balance sheets of Australian households with a mortgage are dangerously exposed to any fall in house prices. It isn't just that household debt relative to disposable incomes has reached a record high of 189 per cent, it's that households' ability to service that debt is potentially\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14239,"url":"https:\/\/thepatientinvestor.com\/index.php\/2016\/09\/28\/government-aims-for-wrong-target-on-debt-macrobusiness\/","url_meta":{"origin":11804,"position":5},"title":"Government aims for wrong target on debt | MacroBusiness","author":"ColinTwiggs","date":"September 28, 2016","format":false,"excerpt":"Macrobusiness quotes LF Economics' submission to the House of Representatives Budget Savings (Omnibus) Bill 2016: ....It is critical policymakers reign in exponentially-growing private sector debts as this consists of a major source of future financial instability. Australia\u2019s household debt to GDP ratio is the highest in the world, at 125%\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2016\/09\/screenhunter_15143-sep-28-10-37-660x382.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2016\/09\/screenhunter_15143-sep-28-10-37-660x382.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2016\/09\/screenhunter_15143-sep-28-10-37-660x382.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/11804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=11804"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/11804\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=11804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=11804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=11804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}