Go long Recessionberg stupidity

Via Reuters:

The government will publish its “Final Budget Outcome” for the 2018/19 fiscal year ended on June 30 on Thursday, Treasurer Josh Frydenberg told Australia’s parliament. The report will also include revised estimates and outlook for the current financial year.

“It will show an improvement on what was forecast, not only in the 2018/19 budget, but also what was forecast in April this year with the 2019/20 budget,” Frydenberg said.

The government in its budget handed down in April forecast a A$4.2 billion ($2.9 billion) deficit for 2018/19 and a A$7.1 billion surplus for 2019/20. If delivered, it would be the first surplus since 2007/08, before the global financial crisis hit.

There is also separate speculation Frydenberg could report an earlier-than-expected surplus for 2018/19, led by a surge in the price for iron ore, Australia’s top export, and solid demand from key trading partner China.

That will look terrific as unemployment rises and GDP remains squashed:

It will be fun in 2020 when the surplus disappears right along with growth. New highs for the index coming. We should start an ETF.

David Llewellyn-Smith
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