Mr Rainbow slips the bridle

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I’ve begged the RBA to muzzle its resident unicorn. But Mr Rainbow (John Edwards) is off the leash again. From the WSJ on yesterday’s employment report:

“They are unambiguously good numbers,” he said.

Still, Mr Edwards said he would not rely on a few months of employment data to judge that the economy has “turned a corner.”

“We know that mining investment is continuing to decline and will for likely several years to come, and we know that government spending is very slow and a drag on growth,” Mr Edwards said.

And we know that markets are enthralled to central bankers right now and uber-sensitive when it comes to currencies, so why egg on the dollar rally (which took off by the way)?

For instance, in a parallel meritocratic universe where the RBNZ runs the Australian economy the same utterance from John Idwuds was printed as:

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These are isolated numbers. Without a lower dollar unemployment will continue to climb and choke off any cyclical rebound.

And the dollar fell to 62 cents.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.