Plain English Blog

The inflation that stops a nation

By Andrew Pegler 30/10/2009 During a week when a race stops a nation I thought it appropriate we break out the champagne, don the fascinator and head trackside to watch the inflation race build speed. Right now the field is tight and the bookies are stumped. Inflation is still boxed in on the rails but it’s itching to break out as bank lending, production prices, house prices and CPI all… Continue reading →

Your new job awaits

posted 26 October 2009 Over the coming decades a combination of the resources boom and the high $AUD are going to radically alter what Australians do for a job. Some industries will thrive, others will wither, but all will be affected. Are you ready? Our unique position as a resource-rich nation situated in Asia means we are literally the first port of call for China, India and other assorted Asian… Continue reading →

Confidence dips but no biggie

Posted October 19, 2009 After surging in recent months, business confidence, according to the latest NAB Business Confidence survey, has fallen slightly. But what is business confidence and how does it affect you? Business confidence surveys look at how the people who run businesses feel about their future prospects. Because companies are often more in touch with consumer demand than the boffins at the Australian Bureau of Statistics, their feedback… Continue reading →

RBA hikes, US stumbles

Posted October 12,2009 Glen Stevens either has good communications advisors or he is much more than just a numbers man. By latching the noun ’emergency’ to the lowest cash rate in 49 years he has set himself up brilliantly for the inexorable round of rate rises that have just kicked off. With improvement to national job ads, housing finance figures and retail sales it was not as if we didn’t… Continue reading →

The buck won’t stop here

Posted October 5, 2009 At the moment the AUD looks unstoppable, having got close to $AU0.88 cents against the USD with some forecasters expecting it to nudge $AU0.95 cents within two years. While this may mean champagne and cigars for some, for others it’s actually pretty bad news – particularly for Australian exporters and international service providers whose products and services become more expensive. Think of it in terms of… Continue reading →

The decline of the US dollar

Posted 30 September, 2009 The sun is setting on the US dollar (USD) and a new global currency order is emerging, driven by a chasm-sized US fiscal deficit, historically low US interest rates, rapid recovery of Asia and the rise of the euro. But first, a little historical background… The USD became the world’s reserve currency in 1944 as part of the Bretton Woods Agreement. Most international transactions have been… Continue reading →

RBA Minutes: Board watching sustainability of recovery

Posted September 18, 2009 The August minutes for the meeting of the RBA’s Martin Place mandarins reveal that while the Board may have kept the cash rate steady at 3%, all eyes remain firmly on how sustainable this recovery will prove to be. To quote directly ‘as at the previous meeting, members noted that the policy decision in the near term involved balancing the risk of over-staying an accommodative stance,… Continue reading →

The Wonder Down Under

Posted September 16, 2009 With a solid banking system, good economic management, political stability, healthy public finances, an open economy situated smack in the middle of Asia’s growth path, we really are the lucky country. Just ask our top ecnocrat the Secretary of the Department of the Treasury Dr Ken Henry. The good doctor sees a very bright future for Australian as the world economy gathers itself, shakes off the… Continue reading →

Australia’s GDP Surges .06% in June Quarter

Posted 7 September 2009 Economists around the world are calling Australia the ‘wonder from down under’ having dodged another recession bullet with GDP growth of .06% in the June quarter, twice what many forecasters expected. That leaves us with 19 straight years without a technical recession and the only developed nation not to go into one during the GFC. But before I launch into more eco babble let’s define a… Continue reading →

The Green Shoots Round-up!

Posted 1 September 2009 We are by nature herd animals, skittish of prey, comfortable in numbers etc. This instinctive urge to move in large numbers, acting in the same way at the same time is especially apparent in finance and economics. Big market trends generally begin and end with buying or selling frenzies. Herding behaviour, driven by emotion, is mostly irrational – fear in the crashes, greed in the bubbles…. Continue reading →