Who woulda thought?
Betcha Stevens feels like this ballet dancer – kind of hard to do the splits on the debt load and the australian dollar.
Australia’s current account deficit plunges with net debt approaches $1 trillion
Australia’s trade position has collapsed dramatically with the June quarter current account deficit plunging 41 per cent to $19 billion.
Graph courtesy of ABS. Click to hyperinflate this mess.
Then we have net foreign debt – close to $1 trillion – well $976,000,000.00
Does that sound like a lot of money?
The current account is a measure of the net sum of imports and exports, as well the so-called invisibles such as net interest and dividend payments from abroad.
The deficit on balance on goods and services doubled from $4.7 billion in the March quarter to $9.6 billion, while the net income position fell 9 per cent to $9 billion.
Chart courtesy of ABS. Click on chart to exaggerate and cry.
We have an interest rate rise coming up by the U.S. Fed Reserve. They have no choice so am willing to get a bottle of beer on the outcome.
Yelling Yellen and her mob have to address the stupid zero rate policy of the prior idiot incumbents.
And in the meantime just volatile markets until the smart money decides were to place it. In bonds I hope – then we shall see how sovereign debts and the international carry trade cope with a resurgent USD and higher interest repayments.
Debt is the killer of countries – yes we are all well and truly f&cked!
And the end of this month a crystallization event in a country – debt default – that would earmark an assumption made on a previous blog.
As these days are numbered – just passing my time trying to break this – what are the odds?