Ever since tennis pro, Josh Depressionberg, was picked by a process of dart-throwing as the new Australian treasurer, MB has warned that his great economic plan was spectacularly ill-conceived.
That plan was to run down public investment to forced interest rates lower and trigger a new round of house price inflation plus consumption supported with tax cuts and mass immigration.
We warned from the outset that this was an idiotic flogging of the dead horse of private debt accumulation and would not work. Moreover, that we were clearly very near the end of the global business cycle so it risked driving Australia to stall speed and made it very vulnerable to offshore shocks and recession.
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