also talked about in that kyle bass video i clipped from

Australia is the most advantageous I'd think as it has massive mineral wealth, and avoided a technical recession.

australia doubled down on the credit expansion in 08

but now their problems are even bigger

see my boy steve keen on exactly that, most of those pics are from his wor

https://www.youtube.com/watch?v=w8fCmUbjDtg

Tbh, grew up in New Zealand, so larger economies are harder to fathom for me.

NZ is more simple in that it can survive on tourism and niche exports.

it's not the size, it's "kind". certain blocks took different paths after credit crisis, australia and oceania doubled down(except for the pegged countries), the us and most of europe accepted contraction and some de-leveraging, but not nearly enough

main problem on my side of the world is austerity and trying to 'balance the budget', avoiding fiscal policy

it's a disaster but it's an entrenched belief system

(and/or corruption by people who know exactly what they are doing)

Well, NZ did its own version of austerity, which was a mistake as far as healthcare spending for sure.

Basically, the last government raised sales taxes, and cut healthcare and social welfare spending.

So now the current govt is having to pay for the gaps that resulted.

that's what happens when you try to balance the budget

there is no free lunch, aggregate demand is going to come from somewhere(or you will get a deep recession/depression)

Well, it is more problematic than that...as NZ has a house price boom, and general costs of life are high.

GG @NewRogernomics, you just advanced to level 8!

yea im watching the housing down there

that's another problem you instigate when you dont use fiscal policy, bank reserves tend to end up in speculative areas

QE in the US is doing that almost as a goal, for same but outsized reasons

it comes from a belief in monetary policy to do things it simply cannot do

Mostly, NZ is doing well due to exports and foreign investment, but that has its problems.

Housing is built that is not affordable for residents and is more of an investment for foreigners, and never lived in.

Residents can't afford housing, and the government tries to help by subsidizing housing for the poor.

But there is still not enough to go round and there are state housing waiting lists, as well as a lack of affordable private housing.

@Sh0t If you visit...you can see a lot of flashy apartments, but also you can see folks living in cars.

there is plenty to go around, kiwis just belief like somebody in this chat does about gov surpluses, yada yada

20% debt gdp ratio :/

Well, govt policy in NZ is to gradually decrease the ratio.

It is openly talked about.

yea, that's why people are homeless lol

it's a bad idea

and it compounds because it also hurts aggregate demand and encourages private debt to make up the difference

Well, NZ used to build sufficient state housing, though over time governments slacked off, and the mood was to just leave it entirely to 'market forces'.

market can do it, but it's how the money enters the system. trying to do it via monetary policy just creates the very inequality they are trying to solve

Though...NZ went through a major economic transformation in the 1980s-1990s, as well as being cut off from the UK market and having the oil shock all at once in the 70s.