18 Years After Lehman Brothers Collapsed — Could the Land Cycle’s Recession Warning Be Any More Precise?
(INCLUDES INTERVIEW WITH RENEGADE ECONOMIST STEVE KEEN - click here to watch it now - Why Recession Is Coming — And How Governments Could Make It Worse)
The Looming Australian Recession
Australia will not escape a technical recession at the end of this land cycle – as it did in 2008.
That remains my forecast.
The RBA has just jacked up the cash rate to 4.60% — its highest level since the Global Financial Crisis.
Michelle Bullock is oblivious to the fact that it’s going to advance Australia into a recession.
Yet here we go again, the illusion that making debt dearer will cure the shortages driving prices higher.
Speaking at the RBA press conference this week, Bullock — who clearly had no idea what she was talking about or the carnage her decisions will cause — implied we’d be thanking her over the next couple of years…
There’s nothing I can say necessarily to make households feel better in this. I understand that. This is tough. And can I say that the Board did not take this decision lightly without thinking that we knew that this was going to hit some people pretty hard. We know this, but we have to do it if we are to bring inflation back down.
We need to do it if we are to bring inflation back down.
That’s our mandate, and ultimately, in the long run, hopefully in the next couple of years when we get inflation back down, this will all have been worth it.
Worth it?!
Unsurprisingly, there’s been a plethora of outrage about the 0.25% rise online and in news reports.
Everyone is busy calculating what it will put onto the average mortgage each month… questioning whether there are more rises ahead….
No one is talking about the cycle, however – or the recession that’s about to hit.
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