The commodity boom has created a “two track” economy. The mining and commodity boom benefits a small part of the economy whilst simultaneously creating problems for other parts. The mining and energy sector account for less than 10% of the Australian economy.
February 10th, 2012 | The Daily Reckoning | 2 comments | ContinuedAll Posts Tagged With: "interest rates"
Vulnerable to External Influences – The Economic State of Australia (Part I)
Australia’s future is inextricably linked to China and the commodity “super boom”. Australian economic prospects remain vulnerable to international developments outside its control.
February 9th, 2012 | The Daily Reckoning | 2 comments | Continued
The Economic Policy of Do As I Say, Not As I Do
There is a delicious irony in the world of economic policy at the moment. The Asian crisis back back in 1997 and 1998 was brought on by the same things that led to the current crisis in Europe and the US (and the one I believe is coming to China).
February 4th, 2012 | The Daily Reckoning | 1 comment | Continued
The First Casualty of the Currency Wars
Can Australia’s currency continue its rampage while exporters burn? The currency wars have been going on quietly here at home for some time now. And going by the state of our exporters, we’re losing.
February 4th, 2012 | Nickolai Hubble | 3 comments | Continued
Currency Wars
The currency wars are heating up. On Wednesday, Federal Reserve boss Ben Bernanke promised speculators he would keep interest rates low until 2014.
January 27th, 2012 | Greg Canavan | 1 comment | Continued
The Downside of a Strong Australian Dollar in the New Brand of Capitalism
The strong Australian dollar makes some export industries chronically uncompetitive. Not only does this make them bad investments, it damages their ability to remain a going concern.
January 24th, 2012 | Dan Denning | 4 comments | Continued
Why Low Interest Rates are Bad for the Economy
A year ago, the RBA and the horde of market economists who hang on its every word expected interest rates to be higher by now. Even as late as September 2011 the RBA was sitting on its hands, unsure which way to move.
January 20th, 2012 | Greg Canavan | 4 comments | Continued
Investment Hopes, Fears and Preparations for 2012 Investors
“Prepare for the worst; hope for the best,” was always good advice. And here at The Daily Reckoning it is the foundation of our investment approach. We never know what will happen. So, what we want are investments that don’t depend on knowing.
January 9th, 2012 | Bill Bonner | 2 comments | Continued
Central Banks Go Bonkers
This week, a certain joke became a painful reality, with a reshuffle at the European Central Bank.
January 7th, 2012 | The Daily Reckoning | 2 comments | Continued
The Brave New World of Debt Deleveraging
The 40-year expansion of credit – the debt supercycle – is over. Its passing means you must re-think how economics and markets ‘work’. Of course economics and the market will still work in the same way they always have. They simply reflect billions of individual decisions made on a daily basis.
December 22nd, 2011 | Greg Canavan | 2 comments | Continued
Unpopular Cures for an Economic Depression
Trying to fix an economic depression is expensive…. The US government spends $1.60 for every $1 it receives in taxes. This is a recipe for a disaster, not for a recovery.
December 15th, 2011 | Bill Bonner | 1 comment | Continued
Will This Great Correction Bring a Darkness Without a Dawn?
So far, the Great Correction has followed the usual script. Bond yields have fallen. Price inflation has generally come down. But demand for credit — as evidenced by $10 trillion government financing costs — is running hot. This is no typical downturn. And it wouldn’t be too surprising if all this demand for credit pushed up bond yields.
December 14th, 2011 | Bill Bonner | 1 comment | Continued
Why Europe’s Fiscal Integration Still Spells Financial Doom
Financial markets will tell you whether private investors believe greater “fiscal integration” is the long-term answer to Europe’s debt problem. We can save you the trouble and tell you the answer now: Europe is still doomed.
December 12th, 2011 | Dan Denning | 5 comments | Continued
Energy, Resources and Real Asset Investing
Basic economics of scarcity, supply and demand, and investment demand won’t be less important in supporting commodities. But in a world of collapsing financial asset values, tangible assets are about to become the hotly contested objects of a great global strategic game.
December 9th, 2011 | Dan Denning | 1 comment | Continued
Is Australia’s Economy Decoupled From the Rest of the World?
The world’s best economy, with the world’s best banks, run by the world’s best treasurer, just posted a world-beating economic growth rate of 1 per cent for the three months to September. The Australian economy is, apparently, on fire, growing at an annual rate of nearly 5 per cent over the past six months.
This raises a few questions…
December 8th, 2011 | Greg Canavan | 2 comments | Continued
