Financial Markets Already Expect the Next Financial Crisis
Well, it turns out that financial markets are now pricing in the former. At least, an obscure part of financial markets is…
Do Central Banks Run Governments Now?
Do Central Banks Run Governments Now?
Do you think central banks will tighten monetary policy and risk a sovereign debt crisis in order to get inflation under control?
Inflation Is Neither Transitory nor Caused by QE
Inflation Is Neither Transitory nor Caused by QE
Inflation is soaring around the world. There’s a great debate between the inflationistas and the transitorians over why. Is supply chain disruption or the money supply behind the ‘surprise’ increase in prices?
Australia’s Vaccine Gamble…That Has Failed Everywhere Else
Australia’s Vaccine Gamble…That Has Failed Everywhere Else
But back to our vaccination rates and the reopening of Australia. What level of vaccination is sufficient to escape lockdown policies? 80%? 90%? How about 140%?
Australian Bonds: Dead Canary or Global Dog Wagger?
Australian Bonds: Dead Canary or Global Dog Wagger?
UK and Australian mortgage borrowers already know how much the bond market’s machinations can hurt. The UK’s Telegraph reports, ‘Homeowners suffer soaring mortgage costs — but banks leave savings rates at record lows’ and ‘No savings accounts beat inflation’.
Is Australia’s Economic Guarantor about to Die of Old Age, Again?
Is Australia’s Economic Guarantor about to Die of Old Age, Again?
That’s right, I’m talking about China, of course. Australia’s economic guarantor, of 2008 at least, and out-key trading partner. Chinese economic growth is also the engine of Australian growth.
Is Australia the Dead Canary in the Global Bond Market?
Is Australia the Dead Canary in the Global Bond Market?
What does this mean? If the Australian government were to borrow money for two years, the interest rate they’d have to pay doubled in a single trading session.
And You Thought This Would Last Forever?
And You Thought This Would Last Forever?
Now, that’s a big call. Lehman Brothers was the last catalyst to cause financial contagion. Since then, central banks and governments have done everything they can to avoid another Lehman Brother-style Code Red.
China’s Fate and Australia’s Fatalism
China’s Fate and Australia’s Fatalism
‘Australia, a country that relies heavily on trade with China, has persistently prodded the most sensitive nerve of its biggest trading partner,’ said China Daily last week.
Unwinding the Third Greatest Misallocation of Capital in History
Unwinding the Third Greatest Misallocation of Capital in History
Investors need to be keenly aware that the world may well have changed after the pandemic, as it had after the First and Second World Wars. But that the end of a gigantic misallocation of capital is not a boom, but a bust.
