Australian dollar destroyed to seventeen year low

See the latest Australian dollar analysis here:

Donald Trump might crash the Australian dollar to zero

DXY is off and running as the great liquidation mushrooms:

The Australian dollar was destroyed to seventeen year lows:

It could not even get a bid versus EMs:

Gold got a bid:

Oil is going to zero:

Base metals not far behind:

Miners are now iron ore patsies, the end:

EM stocks bounced:

Global junk went no bid. Beware everything:

All bonds eased:

As stocks rebounded:

We are not at the bottom in anything. Indeed, we are not even out of outright monetary crisis. Via Zoltan Pozsar at Credit Suisse:

The Fed’s liquidity injections appear not to be working.

All segments of funding markets – secured, unsecured and FX swaps – continue to show growing signs of stress. The Fed may have to do more still.

In the U.S., we watched, but didn’t feel the funding impact of large banks in other countries being asked to help their economies. Now that U.S. banks are asked to do the same, dollar funding markets are starting to feel the impact.

As U.S. banks increase their lending to the real economy as corporations draw on credit lines and banks lend more to households and firms, lending will consume more balance sheet and risk capital, and that will leave less room for market making and arbitrage, which under current circumstances are “luxury”.

The breakdown of o/n repo markets yesterday tell us that balance sheet is now getting scarce to conduct even the most basic type of market making.

As banks are pulling back from market making, the Fed and other central banks need to assume the role of dealer of last resort…

The Fed needs to become a buyer of CDs and CP, but not through the CPFF.

The Fed needs to offer dollars on a daily frequency through the swap lines, and other central banks need to lend dollars on to both banks and non-banks.

The Fed needs to broaden access to the swap lines to other jurisdictions as dollar funding needs are large in Scandinavia, Southeast Asia, Australia and South America, not just in the G-7. The dollar funding needs of both banks and non-banks is what’s at risk and the assets that are being funded are U.S. assets – Treasuries, MBS and credit – so the Fed has a vested interest.

A hallmark theme of the post-QE global financial order has been the secular growth of FX hedged fixed income and credit portfolios at non-bank institutions like life insurers and asset managers from negative interest rate jurisdictions – the new shadow banking system, epitomized by money market funding (FX swaps) of capital market lending (Treasuries and the full credit spectrum).

Carry makes the world go round and as banks do more for the economy central banks will have to backstop the shadow banking system – yet again…

More stress ahead. More Fed action ahead. More DXY rocket ahead. More crashing Australian dollar ahead.

And that’s only the northern hemisphere crisis. Wait until it begins to clear in the northern hemisphere Summer and Australia is left alone as the last bastion of the Winter virus…

David Llewellyn-Smith

Comments

  1. Good call DLS AUD

    Virtually everyone I read said it would bounce inc me, thought we’d bounce from 61 to 64 before down
    I’ve never seen it look so weak, AUD just keeps falling

    no one will be going overseas because of COVID when AUD is 35c no one will be able to afford to go

    Guess with what AUSTRALIA has coming we need to well into 40s to somewhat protect us

      • Roar back? Do you reckon? How much debt do we think there will be to repay after this is all over? More than is possible for a ‘roar back’ to happen?

        • Correct. There’ll be no ‘roaring back’. The damage this will have wrought on balance sheets – corporate, financial and household will be epic. And, if we get a housing collapse, we’ll have a decade of recession / depression. I guarantee the banks are pulling their horns in re lending as risk aversion dominates lending decisions. No bank in its right mind would lend to marginal borrowers at this very moment.

      • BTB
        It’s going to be MB’s theory from 3/4 years ago
        As property crashes, RBA may have to raise rates to attract foreign capital
        Regardless RBA, i agree there will be out of cycle increases
        Interest rates will be going up

        • Surely they can’t raise rates – it will crush this highly indebted country even further down into it’s depression.

          Surely we are looking the the banks being directly funded by the RBA?? Even the formation of a national bank, backed by the government?

    • bcnich
      Great calls.
      40’s isn’t going to protect us. We are NOT going t make fundamental changes to the way we do things. All those who are the ‘entitled’ beneficiaries of the current schmozzle will get themselves compensated. They hold the power and will not let it go – lawyers, public servants, powerful unions, big company execs et al – will all demand, and get, compensation leaving the rest, fixed incomes, pensioners, small businesses, to pay the price. Even worse the whole society is so dead-brained fromMSM and our education system a total disgrace. The necessary changes are just not possible. Rampant out of control inflation will be the only possible outcome. ‘ When?’ is the only question.
      The answers lie back in time.

      • Don’t think I’m quite as old as you flawse but thinking back on posts you were making here years ago, I think I am old enough and experienced enough to know to what you refer ….

        the answers lie back in time …

  2. Come on mate – what are you doing – this is a pandemic not a time to be deleting peoples comments for exposing the truth – seriously ……………you say this and are constantly repeating this myth…

    northern hemisphere Summer and Australia is left alone as the last bastion of the Winter virus…

    And yet every scientist on the planet is saying this – including the WORLD HEALTH ORGANIZATION

    ‘No evidence’ summer will help fight, WHO says
    The notion coronavirus will disappear in the northern summer is a “false hope”, Mike Ryan, executive director of WHO’s emergencies program, has said.

    https://www.abc.net.au/news/2020-03-07/coronavirus-updates-live/12035822

  3. The one big thing that isn’t being discussed

    Look at PIGS
    PORTUGAL
    ITALY
    GREECE
    SPAIN

    bond yields have skyrocketed this month

    Looks like Southern Europe is about to implode again

    We might see Italian Greece Spanish banks go under

    This is big, we need to keep an eye on this

    • Everywhere I look I see reasons for a wholesale implosion of the current monetary system — the ONLY answer they have is creating money by the trillion and throwing it around. As the temporary tide of fake money recedes and threatens massive asset deflation this must be replaced with permanent money (central bank created).

      This only ends one way.

    • MountainGuinMEMBER

      Yep. All those reassuring bank stress tests now counting for nothing. But given mortgage levels in aust, we should be watching both overseas flu experiences and overseas bank collapses to inform where we may be in a few weeks.
      Still curious to see if bank runs start overseas and if so when will it start here.

    • Wowza!
      Greek 10-yr bond went from 80 bps to 360bps since the beginning of this year.
      Portugal 20 bps to 120 bps
      Italy 90 bps to 263 bps
      Spain 13 bps to 105 bps
      Just …… WOWZA!

    • Scotty
      Now people more bearish than me
      It’s a nice feeling
      My focus of concern is the social side
      With all my banging on about a crash, seeing how it is going to affect people just seems to override market forecast
      With rich or poor, famine health heating issues etc makes everyone more even
      Having 50 inv properties won’t help you
      And when there are no jobs their is no negative gearing anyway

      • Interesting – down at the beach this morning and it had a sort of Christmas vibe about it. Lots of people and they weren’t in a mad rush. Maybe when people stop travelling overseas, have a bit more balance (work from home atm may be driving this) we may even start to get a community back. Appreciate there is some serious carnage coming but just maybe there is hope in a community sense??

        • Wasn’t that the experience in Iceland when their economy imploded? On the ground, a decent community vibe returned and people became happy again as the greed disappeared. Consumerism and wealth creation can be toxic.

          • The focus won’t be money because noone will have any
            Most people will lose every cent they have over the next 2 to 3 years.

            Watch Angela’s Ashers,

            That is the decade that lies ahead.

            What we see now in supermarket is just the entree into the future

          • +1
            Also, when you have nothing to lose, a huge weight gets lifted off your shoulders. What do they say: never been poorer, never been happier.

          • ErmingtonPlumbingMEMBER

            Don’t forget Dom,

            “If you’re in trouble or hurt or need–go to poor people. They’re the only ones that’ll help–the only ones.”
            John Steinbeck, The Grapes of Wrath

          • Dom I agree, nothing to lose suddenly means all your concerns and worries disappear. To some extent. So long as you have a roof over your head.

          • I was at Manly – got out of the water at 7am and there were people everywhere on the beach, getting into the water, running and walking and just hanging around. I didn’t notice the cafes though.

        • C3

          Depressions make people come closer together, someone on here keeps disagreeing with me, yes people will be angry at first, but society will now change to a much more kinder place. Maybe riots and anger first but as we head deeper into this global depression people will need to be much kinder to each other.

          • Goldstandard1MEMBER

            bCNICH, HARD TIMES ABSOLUTELY BRING PEOPLE TOGETHER.
            hOWEVER THERE IS always RESISTANCE FROM THE PEOPLE WHO HAVE THE MOST POWER AND MONEY/PROPERTY BECAUSE THEY WANT TO KEEP THEIR STUFF.

            (CAPS LOCK WAS ON AND i CAN’T BE BOTHERED TO CHANGE SO NOT YELLING)

        • No Ben Rickert Ubietz
          I am getting smashed and have no idea where this is all going.
          You can’t let your ego get in the way.
          I am bowing out this year, my luck has run out….
          I am relying on all of you guys for your view now this year
          I have no idea

          Jimbo sold the break at ASX 5700, I turned my short long and lost twice as much. Not me.
          You can call me Chanos, Einhorn, they had a good year then went down in tears, also Dalio “Cash is Trash”, I watched on CNBC DAVOS, I couldn’t believe he said that at Dow 29500
          C Joye will be another that will be remembered for his famous

          30% UP……..when it’ll be 30% down

          Every trader I worked with and some that were guns had really bad down years and made big calls that went wrong.

          The most dangerous trader was one with a big ego.

          You need to quickly admit you are wrong and get out

          • You sound like him and he was an ex-trader. I’m in the same boat – no crystal ball here.
            Keep posting, you bring a refreshing perspective.

            I feel like Antonius Block returning from the Crusades in The Seventh Seal.

            Block: I want knowledge. Not belief. Not surmise. But knowledge. I want God to put out His hand, show His face, speak to me.
            Priest/Death: But He is silent.
            Block: I cry to Him in the dark, but there seems to be no one there.
            Priest/Death: Perhaps there is no one there.
            Block: Then life is a senseless terror. No man can live with Death and know that everything is nothing.
            Priest/Death: Most people think neither of Death nor nothingness.
            Block: Until they stand on the edge of life and see the Darkness.
            Priest/Death: Ah, that day.
            Block: [laughs bitterly] I see. We must make an idol of our fear, and call it God.

          • boomengineeringMEMBER

            bcnich, Down 16K last week, more of this and I’ll qualify for the pension.

          • C “30up30down Joye”

            That’s actually wrong by 60

            Has he capitulated on his 18% more up?
            I can’t wait to hear his excuses
            He is a guy that will never admit he was wrong

            In the end he will be remembered for his last famous mistake.

          • Nah!!! I am the world’s worst investor!!!! Easily!!! Thinking like I have about economies and economics for the last 50 years makes one an especially bad investor. It just always seemed more and ore insane and had to end soon – for 50 yeas.!!!!

      • Diogenes the CynicMEMBER

        The gearing will force the adjustments. If you are levered up and lose your job, have investment properties marked down or are margin called on stock investments you will be destroyed in this carnage. Consumer attitudes towards debt will change after this event – a new “depression” generation will have been created.

      • “My focus of concern is the social side”
        Bingo!!! however this cannot be fixed. The society is already falling apart. There is so much out of control hatred being propagated there is no way of pulling this society back together. See New Orleans flood for an example of a society cracking under pressure.

        • +1
          A smashed AUD is going to be ugly for inflation — including domestically produced goods. We will have Mad Max for real if the AUD goes to 20c — poverty like you never encountered before. I don’t think it goes there but if it does, buy guns — big ones.

      • Mining BoganMEMBER

        I’m thinking I should panic buy one of those electric bikes Haroldus linked the other day before the poo drops much further.

        Need to find a way to do it with all those Velocity and FF points.

      • ErmingtonPlumbingMEMBER

        “How much for a Hyundai at 20c ”

        Indeed… those old Holden Commodore Police cars might be kept on the road a lot longer than originally planned.

        Just think,… soon tax payers will be paying much more for our Government vehicles from overseas than making them here.
        Good work Abbott and Hockey you traitorist, fking Cnts.

          • Love in the time of Corona

            Wait what? I thought he was busy doing my ventilator. Can someone 3-d print that? (yes, T, I admit you’re partially right blah blah blah).

        • BoomToBustMEMBER

          Every time I think about them shutting down production of the Falcon and Commodores I get very angry. I still have a 2012 VE Series 2 SSV Z-Series Commodore Sportwagon in the garage with 82,000km. It is my wifes car, she loves it. Picture a petite 5’4″ female in a 6L V8 blowing P platers into the weeds at the lights when they think they will win. Fuel economy with my wifes driving is not great !!

        • What Gavin didn’t tell us is he has warehouses full of VLs, XDs ready to be sold at only a little inflated price to the constabulary

          I’m looking forward to seeing an ex taxi bright yellow Tickfordly Tweaked XD hunting goons

          • This is why I think more people will start repairing older cars. Especially ones with parts available locally.

          • Without the demand from the manufacturers for parts for new cars I expect the locally manufactured parts will become extinct as well for the most part.

        • Ermo….Please! Let’s get this right. If we just haul off with this simplistic and wrong singling out BS, then we cannot arrive at the right answers. The problems of ALL manufacturing (and farms) in this country are the result of running a GROSSLY over-valued currency for 60 years. It ISN’T Hockey and Abbot – it’s them plus Rudd, Gillard, Swan,Turnbull, Howard and Costello, Hawke and Keating, Fraser, Whitlam, McMahon, Gorton, Holt, and ll their Treasury officials except perhaps John Stone. Add in all the RA Govs except perhaps Macfarlane. Then go looking for every damned University Professor who has presided over faculties teaching the modern economic BS – and that is LL of them since at least 1970.
          It has been treachery on a grand scale – a bunch of gutless selfish pricks willing to sell the nation down the drain for their own ego and greed.

    • AUD at 20c would probably require a fundamental loss of faith….I mean at the political and philosophical level.

      It would probably be highly inflationary or even hyperinflationary.

      If we go below 40c, I seriously wonder if the AUD would continue to exist…

      I’m not saying these things won’t happen, just that it would require some serious dysfunction.

  4. anyone care about UST’s yields still ripping higher? I thought the FED was fixing this and then maybe everyone would sell again, but still up and away. No buyers?

    • I suspect China liquidating treasuries to fund its USD exposure given they have limited access to USD otherwise. Also the 1T stimulus that US just announced will need to be funded by UST sales.

    • For my money, there’s a good chance we’ve just seen the peak for Treasuries – i.e. the bear market begins. Somebody has to buy those treasuries – the US debt is $22 trillion and about to climb steeply toward $30 trillion. Who the fck is going to own that stuff? Foreign Govts? The private sector? Residents of other planets / universes? Lol.

      The Fed is (and will continue to be) the biggest buyer / owner of treasuries by a LONG stretch. But that’s not all: what about the tens of trillions of dollars of foreign Govt debt, corporate debt, HY debt, other debt, equities etc. Who will own all that — and with what money? In a global economy that’s being sucked down the plug-hole.

      We are entering a world where central banks will be the biggest owners of all of the above. What is money going to be worth when CBs are creating tens of trillions of dollars of the stuff out of thin air? How that doesn’t result in massive inflation, I don’t know.

      • It will produce huge inflation I’m sure at some point. Hence I liquidated my fiat a while ago. Better to hold assets with some money for a rainy day. Today it’s raining.

      • ErmingtonPlumbingMEMBER

        And yet we’ve had unusually High price stability for decades in the real economy along with wage stagnation.
        The financialised casino economy has been receiving these printed trillions for decades now that’s why the only inflation we see is in asset prices.
        Well I say f*** those “asset holders” let’s wipe out all the 1 pecenters to Zero.
        That means ending the permanent debt crisis we have been intentionally placed into by our ruling oligarchs.
        We need to wipe out these debts for the sake Civilization and human advancement.
        https://youtu.be/TKkey_48mdw

  5. So the AUD which correlates mostly with our export of commodities and terms of trade is sinking as they head south and expectations of future world trade turns to custard.

    What a surprise! Not.

    But let’s keep cutting rates and propping up inflated asset prices (QE for Bankers) as everyone knows that cheaper debt contracts and the wealth effect are just what we need in a pandemic.

    Lift the tax free threshold to at least $30,000 and means tested welfare payments.

    Finance them with zero percent bonds sold to the RBA.

    Creates special RBA reserve accounts for private bank deposits so they are fully and explicitly reserved.

    Allow individual no interest deposits accounts at the RBA for anyone who wants them.

    The best liquidity there is, is a large central bank balance sheet where EVERYONE has the right to operate a deposit account.

    Never waste a crisis.

    Fix the broken privatised public money model while bankers are still crying out for taxpayer kindness.

      • BoomToBustMEMBER

        Does this mean high outgoing expenses (rent, wages, etc), low profit:income ratio, low savings ?? If so I agree, most businesses had a $h1t christmas period, and survive the bushfire downturn (or your a firey who burned much paid/unpaid leave) then you run into Covid-19 disaster, this will end very badly very quickly. For many businesses that barely made it through this will be the final nail in their coffin.

      • Now’s the time to nationalise a host of businesses by wiping out the shareholders and buying the debt for say 30c in the $.
        Refocus the nation on value-adding export and import-competing industry. Take all the infrastructure assets back into public ownership. Issue bonds for national rebuilding. Tobin taxes on finance flows and trading

        • msdee I agree with your sentiment t(and realise it is an attempt at a one line answer to an enormously complex problem) – however I am 71 years old and I am yet to see a government bureaucracy act in the interests of the people it is supposed to serve. So the government taking over stuff is not the answer.
          Re-aligning the economy MUST happen but it isn’t going to. We are too socially gone. Our population distribution is all wrong. Our education system is shot to irrelevancy. The wrong people have the money. Most importantly the wrong people have the power and those seeking to displace them are simply chasing their own personal power through false premises.

      • Westfield’s will be an interesting 1. During the 08 crisis the most popular form of entertainment was the cinemas in Ireland. Because nobody could afford to drink at the pub.

        • Yep, undoubtedly they will benefit (partially) – during the heatwave in QLD, people would go an spend the day there in the air-conditioning. But at $20 a pop, tickets ain’t cheap at our local Westfield (Event Cinemas). The problem for Westfield is their exposure to the small independents, most of whom barely survive in any given year. With social distancing I can easily see half going bust – unless Westfield grant rent holidays etc. You can guarantee that the likes of Westfield will be lobbying Govt for assistance so that they don’t have to bear the cost of such schemes. Who knows – this is an epic sh*tshow.

  6. ErmingtonPlumbingMEMBER

    Alan Jones on 2GB is saying all this madness around a virus that isn’t even killing THAT many people is a big beat up that is smashing small business.

    Basically plugging for Govie cash to prop up Small business but no mention of cash for Households.
    Odious Fking Cvnt.
    Alan is also calling for Citizen small business owners to have access to their Super to stop them from going under.
    I say scrap the whole scheme, return everyones money and end this tax rort.
    All income should be taxed at exactly the same progressive rate
    .

    • Love in the time of Corona

      Well maybe grandfather it and end it. Sheesh. I’d like my little stash. Just as I want my savings accessible after all the years of fkn waiting for this bubble to pop.

    • PalimpsestMEMBER

      I remember the days when one could invest super back into one’s own company. when it folded it took all the super with it. Employees super too. Fun times. I would like a little more convincing about a total wipe out being good.

    • darklydrawlMEMBER

      Alan is on my ‘champers’ list – one of many of these leeches whom I will toast a glass or two when they catch it. GIttens is naturally another one, along with HighRise Harry, Murdoch just to name a few It’s a long list, let be honest this country is swamped with these greedy windbags.

    • Cash for households is a dead cert IMO – no matter how much resistance there is currently. The Yanks are doing it and the Brits are too — it’s the only sure way to alleviate financial pain these next few months and ensure that all citizens get assisted rather than this retarded piecemeal attempt to cherry-pick recipients. They’re more concerned at the reputational damage of falling in behind Rudd.

    • I think you’d have to listen to everything he is says rather than pick bits. I am in quarantine at the moment so I am a bit more up close and personal with this at the moment perhaps. If I understand correctly Jones is probably, in essence, advocating the ‘herd immunity’ approach. The virus doesn’t have the same effect on younger healthy people as it does on older people and those who have other problems. At the moment we are going to shut the whole economy down with devastating economic and social impact. Perhaps it is better to let the economy run while both totally shutting down (quarantining) those vulnerable and devoting resources to try to protect them at the same time. I am coming around to that thinking but for the moment jus thinking out loud – the privilege of not ACTUALLY having to make a decision that affects 23 million people.

      • ErmingtonPlumbingMEMBER

        Sounds like your an apologest for ScoMo and his Party.
        That is the only reason the cashed up, should have retired years ago, Partisan Alan Jones is still on air battling for his Plutocrat class.

        • Oh FFS I was simply talking about the way we are approaching this. There are math models being run everywhere on what is the best approach to this. It’s complex. Yet all you can do is throw some simplistic political BS sloganeering. I don’t agree with everything from anybody and I don’t disagree with everything from anybody and I haven’t sat around on my arse in Sydney talking to people who agree with me all my life. I’ve been called everything from Agrarian Socialist to something right of Genghis. I wish you’d all make up your effing minds and, at least, stick to one fing thing.
          A casual attempt to deal with facts would help a lot.

  7. PalimpsestMEMBER

    I recall from ’87 that after the big, immediate crash the market then started to separate the wheat from the chaff, and some shares continued to drop. For example, yesterday there were buyers for Flight Centre, QANTAS, and MB’s ‘favourite’ real estate punt. QANTAS probably won’t disappear altogether but it’s already mothballed 8 of 10 A380’s and has no demand to keep the other two flying. Then there’s the rest of the fleet. Will they get even half the fleet back in the air in two years time? There’s a bit of sorting out to come. I don’t quite understand who is buying these at the moment.

    I have a bear bias, but I didn’t have enough hedging for this type of fall.

    • darklydrawlMEMBER

      I agree there will be some winners and lots of loser (and some will be tricky to spot). Yep, Qantas will not be allowed to go under, but I agree with your sentiments that it is likely way too early to get excited about any support levels. This shtshow is only just starting – I reckon things could half and half again before we get close to slowing down.

    • ErmingtonPlumbingMEMBER

      I remember a lot of money running into real estate post 87 crash pumping property prices for years before the “recession we had to have” in 91.

    • It’ll be a mixture of short-covering, a short-term punt and others speculating on Govt support.

      When stuff gets beaten up this broadly it always bounces – the key is to know when to get out again.

    • RogueChefMEMBER

      $715M for QAN and VAH!! Day after QAN reduces network and mothballs fleet.
      What about deploying their cash reserves first before a taxpayer bailout!

  8. Is Coronavirus real?
    Does anyone here actually know anyone that has been “infected” with it?
    Does anyone here actually know anyone that’s died from it?

    • You mean: is this a fake, Govt-led crisis, designed to punt us into a one-world digital currency and avoid the ignominy of the outright failure of the current fiat money system?

      Quite possible.

      (George Soros cackles while rubbing his non-sanitised hands in evident satisfaction)

    • Assets are being transferred from dummies to the already rich and powerful who will come out if this even more rich and powerful. Certain people are certainly benefiting from this.

      There’s a powerful group of people in the world and they have done an exceptional job here. All done by means of the media and the domino effect of panic and continuous reporting. The entire world is in panic mode. Countries are locked down and economic activity has diminished to barely anything.

      If you follow the money you will have all the answers you need.

      • ErmingtonPlumbingMEMBER

        Agree.
        these people are not just the enemies of the working class and poor they are the enemies of human advancement and civilization itself.
        Their power needs to be challenged and destroyed.

      • For the average man/woman on the street, they’re worried. They might stock up on toilet paper, rice or whatever. They’ll get emotional. They might even lose their job. They’ll eagerly read the news updates each day and talk for hours if not days (in pure total) about the subject to friends and family.

        At the end of the day, assets will have been transferred from the dumb masses to the already super wealthy. And that’s all that mattered.

  9. They have to get flows going again. This system of financialisation was built up to depend on flows of tokens not stocks of tokens like the old days. Way too late to swap to a stock based system which is what is needed in these circumstances. They will have to intervene everywhere to insert flows until the worst is over or there will be real trouble.

    • Unfortunately our supply chains for physical goods have all gone “just in time” and also depend on flows rather than stockpiles.
      i expect the next few months will really reveal the folly of that, with the current supermarket situation just the beginning.

      • darklydrawlMEMBER

        And I think our friend bcnich is also correct about the social aspect here. Remember that nearly all of the folks around today have never seen anything real stock shortages or hard times. We have lived in a guilded age, but now it gets tough – even though this is likely to be temporary, many people won’t cope. They live ‘just in time’ lives too.

        • BC is overly optimistic. Maybe people will get along fine in a purely Aussie environment, although I have my doubt’s once real shortages start given the behaviour on display so far. In communities with significant Vibrant populations a very serious us V them situation is likely to develop if real shortages happen.
          Why should all these immigrants be getting food when real aussies have none is a more likely sentiment to emerge than some kumbaya love in lets all get along.

  10. As a younger cohort im not sure which view to believe, are we going mad max or will it just be a sustained poor period? people say Perth has already been in recession level times for a while now and i haven’t found it that bad living here, if its just the same but spending a bit less i think i can survive ok.

    • Well, neither Venezuela nor Zimbabwe have gone Mad Max, so I don’t think we are getting quite there yet.
      And as always, the pain isn;t shared equally. If you maintain employment a recession isn’t so bad. Losing your job when there are none to be found on the other hand. How would you feel living on newstart for the next few years? Probably spending quite a lot less at that point.

  11. A 17 year low is hardly the first time in the entire human history, so it is nothing special.

    Meanwhile, gold/silver ratio stays in the uncharted territory where the mankind has never visited before yesterday.

    You are witnessing history in the making, folks.

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