Revisiting the new economic glossary

Remember readers, some months ago I posted the new economic glossary, which was a set of fresh terms to help describe Australia’s rapidly evolving contemporary economy. Here is the lexicon as it stands:

Politico-housing complex The great public/private partnership of the Australian housing quango that has virtually nothing in common with either capitalism or a “market”.

Invisopower! The myterious fog that surrounds the details of Australian banks’ offshore borrowing. A cloak deployed by regulators.

Bullhawk A half housing bull, half interest rate hawk. Examples include Christopher Joye and Adam Carr.

Disleveraging The idea that falling credit growth can be sustained forever without ever tipping into outright debt-deflation.

Futureboom! The concept of an ever expanding future mining boom that gets bigger the worse immediate data becomes.

Boganomics The strange nexus between anti-comptitive corporations and gullible but patriotic battlers.

Gittins! The Fairfax commentator with whom I have most in common yet cannot abide owing to an appalling generational gulf.

The Pascometer A remarkably accurate guide to key market reversals based upon the opposite of Michael Pascoe calls.

Business Hysteria My pet name for Business Spectator when it gets righteous in defense of vested interests.

Macrobated The fascinating shift from in the MSM towards views expressed first at MacroBusiness.

Macrobation The act of being macrobated.

Now, we have need of a new term. According to the head of the Australian Treasury, Martin Parkinson, neither Australia, nor the Dutch before us, have Dutch disease. So, we need a new term to describe what it is we do have. The symptoms include:

  • two speed economy
  • a dramatic withering of manufacturing
  • pressure also on other non-resource export sectors
  • a high currency
  • a resources boom and increasing export dependence upon commodities

What say you, good doctors?

Houses and Holes

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 fouding 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.

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Comments

  1. A tad tasteless no?

    I’d prefer the term blind ignorance, but that is less a condition and more a choice.

    • +1 for MADD, although a non-acroynm description would be better (as would a perma link on the menu for the glossary)

      PD is tasteless, as much as it fits the bill.

      Alzheimers would be better – as the forgetfulness of history is first class when it comes to economic institutions.

      • How about Alzminers disease then 🙂

        I actually think we have Chronic Debt Fatigue Syndrome (private debt that is)

      • I like that one Hamish.

        History seems to be a forgotten subject – as I keep saying – there were many mining booms and busts in our economic history, but never before have we hoisted our entire economy onto them…

        Dont. Mention. The. (Private) Debt.

        Alzminers Disease…….like it.

      • I was about to say, the Pascometer is signalling something pretty scary today…

        the RBA doesn’t know exactly how big an impact North Atlantic wobbles will have on the rest of the world – nobody does – but Australia’s ability to deal with whatever happens next is fundamentally stronger, something gradually receiving greater recognition abroad.

        While foreign central banks keenly seek Canberra debt, the RBA says Australian banks benefited from the reallocation of US money market funds reducing their funding of European banks. Not that our banks need foreign funding the way they did three years ago:

        “The heightened volatility in markets resulted in very low bond issuance globally and in the domestic market. In any event, the Australian banks did not need to issue, given strong deposit inflows both on and offshore, and slow balance sheet growth. Indeed, the strength of deposit growth and the decline in the yield curve saw a reduction in some deposit rates as well as some fixed-term lending rates.”

    • Less than tasteful is the phrase.
      But of course it is totally inappropriate to you any way so the point is moot

  2. two speed economy
    a dramatic withering of manufacturing
    pressure also on other non-resource export sectors
    a high currency
    a resources boom and increasing export dependence upon commodities

    parkinsons disease.

    is a degenerative disorder of the central nervous system. … Early in the course of the disease, the most obvious symptoms are movement-related, including shaking, rigidity, slowness of movement and difficulty with walking and gait. Later, cognitive and behavioural problems may arise, with dementia commonly occurring in the advanced stages of the disease. Other symptoms include sensory, sleep and emotional problems. …

    no disrespect to sufferers intended.

  3. If you go back to the original literature there are two terms – The Gregory effect is the high dollar and resulting shift away from manufacturing.

    Dutch disease is when the government follows this adjustment with cyclical fiscal policy, making the boom and busts worse. The Netherlands problem was due to they government spending too much on health and education (a fantastic proposition, but one so important it should have a more robust funding base). Once people are used to the good life you can’t scale it back when the gas flow slows. For discussion see Kremers chapter ‘The Dutch Disease in the Netherlands’ in Neary & van Wijnbergen’s 1986 book ‘Natural Resources and the Macroeconomy’.

    The original Economist article framed it as “waking up one morning […] with a monumental hangover”, so perhaps something on the line of partying too hard?

    Commodity bender?

  4. Red Gold Fever…. or maybe Orewinked…. how about econoblinkered?

    think I’ll give up now lol 😉

    • No No keep em coming.
      Orewinked yeah.
      mebbe in uppercase.

      OREWINKED.

      OMG, Mabel we are destitute sob sob We have been OREWINKED.

      I just know Steele Rudd would have been all over this.

      Perhaps Kevin from QLD can help.

  5. I submit,

    Minstral Swan: An entirely predictable white swan which is made to frantically impersonate a black swan, badly, to legitimise the failure of learned experts to forsee the bleeding obvious. Insults the sensibilities of all who see it.

    See: The GFC. Also the failure of the Iraq war to acheive democratic reform. Also many “unexpected” adverse events in newly marketed pharmaceuticals.

  6. Project-MKUltra
    Mining Kapitulation Ultra ,a place where.
    One flu east
    One flew west
    and one threw over the cuckoo’s nest
    Like a ‘ratchit’ nursed in medication…

    Thanks H&H…Cheers JR

  7. Denial: After 25 years of academic study in economics, it’s only a bit of paper that separates your forecasting ability from Dazza and Bazza efforts after 25 beers at the pub.

  8. pyronomics

    pyro = fire
    economics = a kind of muesli

    pyronomics….learned inquiry into why our breakfast is going up in smoke

  9. The CWE Award for Leadership.

    CWE: Chief Walking Eagle-so full of s**t it can’t fly.

    Bolloxnomics. What you are left with after you strip the bs out of MSM.