Australian dollar sinks as recession risks mushroom

It’s fast slipping away from the lunatic RBA with every data point in Australia now swan diving. Today swooning job ads and crashing building approvals sank the Australian dollar:

Bonds loved it:

XJO too:

Big Iron is non-stop:

And Big Gas:

Big Gold is firm:

And Big Banks are sharply higher on Hayne hopes:

Big Realty too:

Meanwhile, it is farewell to the real economy.

Comments

  1. What jobs are all those new immigrants going to do? Presumably they are not eligible for the dole or any other handouts.

  2. What is “the real economy” in this case? You mean the household economy? That money it earns has to come from somewhere (whether it is iron ore, gas, farming, etc).

    • We now have what I call a soufflé economy where the unproductive FIRE sector has been pumped up by debt and inflated housing asset values. The debt spigot is now being turned off so the FIRE sector will deflate, etc.