Reader Briefly noted the following on today’s Woodside post:
It is all going to pieces. Exports will not climb enough to cover the structural income deficit. External instability and its cousin, fiscal instability, are there for all to see.
The downturn has already started. When a Tory Treasurer gives a pro-cyclical boost to contraction, everything will come apart.
Rising unemployment, business failures, fiscal deterioration, distress in property, banking and credit, depreciation, declines in real wages and further hits to demand and profits.
The big adjustment is starting.
I could not have summarised the risks in our present situation more succinctly.
