Leverage Plain and Simple
Leverage Plain and Simple – The Path to Riches or Ruin When you stretch the time horizon long enough, you find things are less about winning or losing and more about playing or quitting. And leverage. Boiling this down to what this means in the world of business and investment, it means that the trick […]
The Inverted Yield Curve
The Inverted Yield Curve Making Its Way To Australia An inverted yield curve in the US is making headline news in financial circles. The reason for this is the history of inverted yield curves being a powerful predictor of recessions. Inflation in the US has been at or below zero for short periods three times […]
Deflation or Stagflation
Deflation or Stagflation If I had to choose between these two evils, it would probably be stagflation, but it would be a close-run thing. It looks like the reserve bank may eventually be in the invidious position of one day having to deal with stagflation. Stagflation is roughly defined as the condition in which there […]
A Soft Landing is Now Off the Table
A Soft Landing is Now Off the Table in 2023 A soft landing is now off the table for the Australian economy. The recent national accounts showed that GDP increased by only .2% in the first quarter of this calendar year. This falls within the scope of rounding error which could be revised to a […]
The Reserve Bank of Australia set up to fail
A relatively modern discovery of the branch of economics called macroeconomics is the empirical relationship between the rate of inflation and the rate of unemployment. The relationship, which was discovered in 1958 by UK economist A.W. Phillips, shows an inverse relationship between the level of unemployment and the rate of change in wages. We have […]
