The Ukraine War should never have happened. Russia should have been courted by the West instead with economic access and security guarantees. When it did happen, it drove Russia into the arms of China, forming a titanic “no limits” autocratic Asia supercontinent, intensifying Cold War 2.0. Undoing this in some measure is no bad thing
Overnight saw another stumble on Wall Street as large industrial stocks warned of recessionary fears with European shares also failing to get back on trend as the Ukrainian situation sours in Russia’s favour. A reversal in fortune for USD as all the undollars led by Yen made big gains overnight with the Australian dollar leaping
They are queuing up now, and why not? The Bullock RBA is schmozzle. Poor communications. Terrible forecasting. Empty intellectual integrity. Rules on the run. Here is Luci Ellis at Westpac taking her pound of flesh. As was widely expected, the RBA cut the cash rate this week by 25bps to 4.1%. Inflation has declined faster
DXY is breaking down as Tariff Man turns into Deal Man. AUD to the moon! Still room to close the jaws. And now for another one-month commodity bubble. Big miners past the worst. LMAO! EM loving DXY. Junk fizzer. Yields eased. Stocks struggling ATH. This is the kind of squeezy action we need to puke
On Thursday, I reported how the Reserve Bank of Australia’s (RBA) latest Statement of Monetary Policy (SoMP) suggested that real per capita household disposable income may not recover back to its Q2 2022 peak until the early 2030s. The situation is even worse for real wages. The following chart shows actual real wage growth as
Its a sea of red across most Asian share markets as His MAGA-Sty tries yet another round of tariffs following the falling in line behind Russia over Ukraine, although other risk markets have been able to absorb this new volatility a little better. The USD is back on the ropes again with Yen sharply higher
Gareth Aird and Stephen Wu, economists at CBA, published a report (presented below) explaining how the Reserve Bank of Australia’s (RBA) February Statement of Monetary Policy (SoMP) lowered the neutral estimate of Australia’s cash rate to around 2.9%, down from its previous estimate of 3.5%. This lowering of the neutral cash rate increases the likelihood
Late last year, the National Anti-Corruption Commission (NACC) became embroiled in its own corruption scandal. When the Royal Commission on the Robodebt Scheme issued its report, the commissioner recommended that six individuals be referred to the NACC for investigation. Many Robodebt victims were angered when the NACC declared that it would not implement the recommendation.
Australian households have endured the sharpest decline in per capita disposable incomes on record. Since peaking in Q2 2022, real per capita household disposable income has declined by around 8%. The chart below shows real per capita household disposable income in a long-term historical context. The February Statement of Monetary Policy (SoMP) contains forecasts on
Victoria has the nation’s largest per capita debt and the lowest credit rating. According to the recent budget update, Victoria’s net debt increased from $36 billion to $155 billion in the last decade. The state’s net debt is forecast to increase to $187 billion over the three years to 2026-27. The bloating of Victoria’s public