After his recent damage control, Business Spectator’s Adam Carr pins his ears back today on his forthcoming boom:
…Non-mining business investment is at recessionary levels. We have high rates of consumer savings and subdued credit growth. This is all symptomatic of a confidence crisis. Our policymakers are dominated by it and politicians on both sides are cultivating it, putting spin above the interests of the nation.
Against all that, the rebound we’ve seen in both business and consumer confidence lately is phenomenal.
…That there are few impediments to this upswing ensures that when it does occur, its duration could be lengthy. Debt is not the constraint to growth that some people think. It is high for consumers, but then the cost of servicing debt is low — at decade-lows for consumers and even better than that for business.
…The great hilarity is that, if anything, the RBA is set to cut again…I find it extraordinary that some of the loudest fearmongers on debt are the strongest advocates of further easing. Lower rates will lead to higher debt; it’s pretty simple.
…Even in this low-confidence environment, it’s a testament to how strong our economy actually is that GDP has been growing at an above-trend pace (with the exception of three anomalous quarters of growth) for about three years.
I wish I was Mad Adam!
