Were it not for the amusement of it all, I am getting sick of these “unexpected” happenings that economists and politicians who cannot find their ass with two hands and a roadmap cannot see.
Here is another case in point: Australian Jobless Rate Rises Most Since 2010
Australia’s jobless rate unexpectedly rose to an eight-month high last month as employers cut full-time staff, prompting investors to increase bets the central bank will lower the developed world’s highest interest rates.
Unemployment jumped to 5.1 percent in July from 4.9 percent a month earlier, the first increase since October, the statistics bureau said in Sydney today. The number of workers fell by 100 after a revised 18,200 gain in June. That compares with the median estimate for 10,000 additional jobs in a Bloomberg News survey of 25 economists.
David Jones, the nation’s second-biggest department store chain, today reported second-half same-store sales declined 6.9 percent, with Chief Executive Officer Paul Zahra saying “we are facing an extremely difficult trading environment.”
Investors are betting the central bank will cut rates by at least 125 basis points by December, interbank cash-rate futures show. Economists surveyed by Bloomberg News on Aug. 9 say RBA Governor Glenn Stevens will keep borrowing costs unchanged at 4.75 percent this year.
Complete BullSwill from Australian Treasurer
If you live in Australia (or even if you don’t) and want to hear complete “bullswill” about the Australian economy, I can deliver. Simply listen to this nonsense from Australian Treasurer Wayne Swan.
Is anyone else tired of this bullswill?
In a sense I am appreciative because it makes for easy-to-rebut commentary, but if Bloomberg had a clue (Bloomberg do you have a clue?), it ought to be talking to Australian economist Steve Keen, not some political hack with a vested interest in sounding the perpetual drumbeat that “everything is rosy”.
Mike “Mish” Shedlock
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