Australian dollar virtue signals a crash


DXY looks to be getting set for break out:

AUD virtue signalled a crash:

North Asia is going nowhere:

Oil virtue signalled an embargo. The gold whale swims on:


Wall Street is handing the world another commodity inflation shock:


Big miners are heavy underperformers as iron ore struggles:

EM stocks yawned:

Junk offering hope for risk:


Treasuries were bid briefly on virtue signalled war:

The arse is falling out of stocks anyway:

What a phony world this is (and not all bad for it).


Even the mullahs of Tehran and nationalists of Tel Aviv only virtue-signal enmity these days.

Iran tells Israel where it’s going to send its virtue-signalled rockets to ensure they are all shot down, and Israel fires a volley of virtue-signalled ersatz drones in return.

Nobody dies. It’s all for domestic consumption, not to change anything beyond the perception that they are hard-men leaders.


Don’t get me wrong. Virtue signalled war is a damned side better than the real thing.

I just wonder when markets will read it this way. Phony wars can turn real, see Ukraine, but the Levant doesn’t look like it after yesterday.

Nor is the Arab man on the street in wild protest marches. Perhaps he, too, is busy virtue-signaling in online forums.


Israel, or, rather, Bibi Netanyahu, is still going to destroy Rafah to stay in power as Western governments virtue signal their opposition.

So, the poor old Palestinians are the only ones still stuck in modernity, where stuff can actually kill you.

Markets appear to be caught somewhere in between.


Oil hasn’t gone anywhere in weeks, so there is some registration of a post-truth war there.

But it has moved enough to spook the Fed and disinflationary trends, so DXY is on a roll.

Meanwhile, AUD fake crashes and then posts a bullish hammer candle off its wild short positioning:


Hooocoodanode that an obscure group of post-Marxist French theorists in the 1970s would so utterly transform the world from real to fake.

Or was it always fake? And this discourse is no more meaningful than my personal history of sexuality bounded by the Panopticon?

Destined for deconstruction in a digitate hall of mirrors that signals nothing back and forth for all eternity?


I invest; therefore, I am!

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.