Interesting claim I just googled marginal utility of debt and most people agree with you to a point. I just wonder what point it becomes a burden. Obviously at 0% or negative rates, "never" is the answer so I guess we load up and wait for the central banks to cut.
Interesting you suggest lowering interest rates rather than cutting spending and debt. If it really is a ponzi scheme then paying off debt will crash the system.
Japan is interesting 1989 stock market crash due to monetary tightening. Land around the emperors palace worth more than all of California (sounds like current Akld house prices).
https://tradingeconomics.com/japan/i...mulus%20policy.
I guess proof that you just need to take interest rates negative and keep them there and print lots and lots of money. The JCB owns 43% of the govt debt and a large chunk of the Japanese stock market via etf purchases. Still the third biggest economy so maybe no problems re debt and money printing. Sad if you bought into the stock market in 1989 though as you are still underwater (I think) despite the efforts of the JCB.
If there has been no downside to this policy then maybe we should be trying to catch Japan as we have already adopted money printing and low rates as the way forward we are just probably not doing enough. Adrian has asked the banks to prepare for negative rates. Are we at 1989 Japan or later years as this will affect my decision to follow Toddy all in on shares. Especially after a couple of rough days on the bourse. No worries as long as you can wait 34 years to break even.