MB Fund Podcast – Australian Households weighed down by Debt Anchor? With Prof. Richard Holden

In today’s investment webinar Nucleus Wealth’s Head of Investments Damien Klassen, Head of Advice Tim Fuller and Prof. Richard Holden explore what measures are left for both monetary and fiscal levers with the chance to prevent, or exacerbate the indelible effects of the pandemic on the Australian economy.

Join us as we discuss the ongoing impacts of the coronavirus, and whether Australia’s global leading household debt levels may fuel a protracted downturn in our economy. We wrap up with a discussion around the solutions to these structural issues and the investment implications of this going forward.

You can find Prof. Richard Holden’s work here:

Latest Vital Signs article – https://bit.ly/2FT9QlQ

Twitter feed – https://twitter.com/profholden

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Tim Fuller is Head of Advice at the MacroBusiness Fund, which is powered by Nucleus Wealth.

The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Tim Fuller is an authorised representative of Nucleus Wealth Management, a Corporate Authorised Representative of Nucleus Advice Pty Ltd – AFSL 515796.

Tim Fuller

Comments

  1. At last! The private debt shackle is at least being acknowledged, imo it is the real millstone of the debt mix. Jubilee, inflate it away, leave it rot, a mix or something else?

    • When experts [email protected] on about ‘secular stagnation’ what they’re really talking about — clearly without knowing it — is the debt anchor. The more indebted a nation becomes (public and/or private) the more the economy suffocates.

      It ain’t rocket science.

      • My comment is about private debt. If we acknowledge that it is a problem (we both do) then it we look for policy response.

  2. None of the MMT originators advocate for a UBI and several have argued actively against one. What is a universal among the originators as a policy option is implementing a Job Guarantee as a contra policy to unemployment benefits or Job Seeker. Its unfortunate that Richard Holden as an academics in the public sphere appears not to have a sufficient grasp of the MMT literature.

    • The Job Guarantee proposal, which I understand you’re against and that’s quite alright by me, is an interesting one.

      It’s like a ‘job’ is something ubiquitous — I mean, how do ensure that an unemployed lawyer or graphic designer or orthodontist or wine maker or masseur or scuba diving instructor or dog walker or fine art buyer or crypto-currency trader or photographer or vlogger or footballer gets a job? Or do we assume they won’t be guaranteed a job in their chosen field? Do we just assume that all the above will be handed a shovel and told to dig ditches under the ‘guarantee’ scheme?

      It’s definitely an idea borne of someone with an abysmally small intellect, however well intended.

      • Don’t bother Dominic. These people don’t live in the real world. They are from Matrix.

      • Presumably the people who wrote it, surely?

        But if you insisted that the people who wrote the MMT literature didn’t understand what they were on about, I wouldn’t disagree with you.

  3. He agrees with fiscal spending but not MMT? All I’m hearing is that he wants the newly printed money forever more to go to the private sector in the form of interest payments, more weakening of regulation on our workers when its pretty known trickle down doesn’t really work, etc. Also I don’t think the RBA have done the best job over the past few years – they’ve let debt ramp up (private debt) because they weren’t able to accept public debt (whether its with private holders or the central bank to me is moot – but maybe not to banks who employ these economists) needs to rise.

  4. Thanks Tim, that was excellent. Richard was very good though I don’t think he put forward any policy optionsthat directly address the household debt problem after acknowledging it is the worst of the three (govt, business, hh) debt scenarios. Do you think his proposed enhanced JobKeeper/JobSeeker payments is meant to provide the income for household debt servicing in the low interest rate future?