Mr Rainbow slips the bridle

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:

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.

Comments

  1. so why egg on the dollar rally (which took off by the way)?

    Maybe he wants to give us one last opportunity to buy more USDs?

  2. reusachtigeMEMBER

    LOLOLOL when are you sick permabears gonna realize we are actually booming and there is no real issue at all other than your poor imaginations!

  3. The RBA chart pack doesn’t give this reader an overall sense that we have “turned a corner”. It looks more like we are about to head over a cliff. The political class have a simple solution though … increase migration, keep the participation rate and individual marginal tax brackets static, then forecast nominal wage growth of 4% compound … to get us “close” to break-even by 2020.

  4. Isolated numbers? The confidence interval said the change was anywhere from -0.4% to +0.4%. In a world where a 0.1% change can move markets, the number is too imprecise to be relevant,