Where does all the money come from

Taxes

trees.

In a round about way that is what is happening though.

The ECB buy bonds via QE money, it's needs must but it is worrying all the same that the Eurozone is so reliant on it, many countries can borrow at minus rates on 10 years, or below 1%. That is largely true up to 30 year bonds.

Either way they are borrowing for free.

Just imagine if something happened to say significantly damage the Italian economy, like knock its tourism sector for 6 for 2 years, that's about 10% of its GDP. A country already at massive debt but admittedly well able to service it prior to Covid. It can borrow for free, it's viewed as that solid. One of the most solid economies on record for bonds.

It may well work out but it's a hell of a distortion.

In many Dutch cities a million will not buy you a reasonable house in a reasonable neighborhood. Ultimately it feeds through.

The Hague makes Dublin seem like a cheap place.

Its just numbers on a computer screen.

Watch Ray Dalios economic machine video on youtube

It comes from general taxation eg landlords pay 40 to 50 per cent tax , paye tax on salaried workers, capital gains tax, also just because someone earns 30k does not mean they will even apply for hap payments, in our housing crisis many young people simply live at home rather than pay high rents Couples rent one bed apartments. Not all landlords accept hap payments. Or the rent is above the max limits for gap in the area you work in. It's very hard to find a single flat if you are claiming hap payments as a single person. And the government can say we can spend billions but there's a shortage of building workers in Ireland many workers left when the pandemic started.

The cost of building a house has increased 35 to 40 per cent.

David McWilliams said buyers should wait and step away from the housing market,

Ireland's national debt per head is about €42,000, which works out at around €90,000 per person in employment.

In the new age of economics around the world (look at what Joe Biden is doing) you don't have to worry about that.

Money is a concept issued by central banks, ie umlimited. Borrowing is cheap so economies are changing and money supply is practically unlimited so governments are changing their polices.

The ECB's programme called PEPP is an emergency programme to purchase Govt debt.

It will not continue forever.

I see discussions about when it might begin to be tapered off.

But with that in mind, is it not too early to determine whether or not the European economy is ready for the emergency purchases to be withdrawn?

The monetary policy measures were intended to limit the impact of the pandemic on the economy, maintain favourable financing conditions and ensure we met our inflation target. Looking at the European economy, you can see that the recovery was very strong in the second quarter, and we believe it will continue to be fairly strong in the third and fourth quarters. Our emergency [purchase] programme is linked to the pandemic and its economic consequences. But one thing is clear: recent data are very positive. The European economy will be able to recover its pre-pandemic income levels by the end of this year or the beginning of next year. We will have new projections in the coming days and will take our decisions accordingly. In September we will also have to decide on the volume of purchases for the last quarter of this year. If inflation and the economy recover, then there will logically be a gradual normalisation of monetary policy, and of fiscal policy too.

Also https://www.youtube.com/watch?v=2XX2b2MeDe0

Money is printed. More money around devalues all the existing money in things like savings and pension funds and causes inflation, which is price rises on everything from food, to fuel, house prices new and used.

Those who can't get decent pay increases like unemployed, minimum wage workers, pensioners etc. end up with an effective less money or an income reduction, in that they can now buy less with their fixed income. Also all earners have an effective pay cut.

In terms of borrowing all this in theory needs to be eventually paid back, and future generations will be burdened with this government debt. At the moment interest rates are at an all time low meaning repayments for massive dept is hardly anything, but if rates rise, then the annual cost of paying the debt will balloon. In terms of David Mc Williams take what he says with a pinch of salt. He is becoming a shock jock and writing regular articles to shock and give an alternative to the main stream. He says don't buy now, but not that prices will necessarily collapse any time soon. Banks are loaning now, and in the future they main not loan (such as during a crash). Rates are very low for loans now, they may not be in a crash. Many people get a home loan when they reach a certain stage in life, such as a couple planning on having kids, and market forces don't really apply as they have urgent needs. There are many downsides to renting, but one upside of buying is that it is very hard for banks in Ireland to evict you during a crash, so it's likely once you get your home, even if you lose your job, you should be able to stay for a number of years.

Electronic money is a construct, but inflation, supply and demand and international investors in the property market including government intervention in the housing market is all skewing a normal market. County Councils are buying whole housing estates from builders, so supply to ordinary first time buyers is heavily impacted by the local lack of supply. There are sheep graising in unused lots in industrial estates near the red cow, so there is lots of undeveloped land with land owners holding back.

I don't understand what is going on with this clock, but it is very pretty to look at.

https://www.usdebtclock.org/index.html

Next you will be telling me the temporary measure that is USC won't continue forever.