AAA wreckage as Budget of Lies falls apart

I’ve already chronicled extensively the ludicrous assumptions underpinning the Budget:

dwelling investment to grow 2% when we already know it has peaked in ABS data;
business investment is expected to fall -5% when hard ABS data is already measuring it at -18%;
wages and demand growth based on 1.6% productivity gains when the current trend is sharp falls;
iron ore forecasts that are 42% higher than futures markets are projecting;
nominal growth that is supposed to accelerate when it is largely made up of the above.

Yesterday it’s assumptions got much worse with wages growth. Here are the charts with wages growth at 1.99% and headed well south of 2%:

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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.