Finance & Fury Podcast

Welcome to Finance and Fury Today – want to explore the chances of the ASX booming next year Have been talking about complexity theory for the past few Monday episodes – Focusing on collapses – but what if positive feedback loops kick in further – in the form of potential QE from the RBA Want to cover this as a few developments have happened recently – pointing towards this possibility in 2020 Speculation from Banks – the RBA balance sheets show this   First – the process of QE – covered what it is in the past and why it doesn’t help the population – just raise prices Why? there is a concept of what is called the Cantillon effect - Cantillon effects – Under the assumption that all resources are fully utilised in equilibrium, a credit expansion implies that producers of capital goods in the ‘new’ processes of production bid away resources from ‘older’ processes. This is where the Cantillon Effect begins to work. The injection of additional money increases the purchasing power in the part of the econom