This morning at Macrobusiness, the boys have completely given up resistance and have immediately commenced begging to be assimilated into the EZFKA collective:
my my, how the mighty have fallen.
Luckily, the macrobusiness boys have a good chance of being accepted and assimilated on reasonably concessional terms, as the degree of their repudiation of Australia (and thereby embracing of EZFKA principles) is quite impressive. Here are the pertinent snips from the job application:
If ordinary Aussies want to blow a new house price bubble then who am I to stop them? It’s cheaper to buy than rent so why not.
Second, it may be stupid to inflate more bubble but it’s no longer hollowing out the economy. Australia is a global price taker on interest rates and we’ve finally gotten monetary policy to where it needs to be at zero with QE, so the Australian dollar is not artificially inflated anymore. Moreover, the last house price boom saw little activity spillovers and neither will this one so the AUD will stay weak
In short, the Aussie property bubble is a shadow of its former self:
– It no longer does so much harm to equityhttps://www.macrobusiness.com.au/2020/11/how-i-learned-to-stop-worrying-and-love-the-property-bubble/
– It does much less economic harm to tradaeble sectors (though land prices remain an issue)
– It no longer creates enormous financial stability risk
– It no longer pushes us towards China
As applications go, this is pretty good – Macrobusiness has endorsed the dropping of a Neutron Bomb on the EZFKA, to destroy any legacy residents and any remnants of their culture. To keep intact the precious ‘economy’.
It’s the EZFKA utopia vision – equities doing well, tradeables doing well, financial stability guaranteed, FX rate at whatever Macrobusiness wants it to be, monetary policy wherever Macrobusiness wants it to be, economy really buzzing.
And no people. No culture. No society. No values. How sweet it would be. The modern Ben Tre, benefitting from the Macrobusiness prescription – destroy Australia in order to save the co-located Economic Zone (Formerly Known as Australia – EZFKA).
Of course, this was all perfectly predictable. Not only perfectly predictable, but perfectly predicted – here is the Prescient Previous Peachy Prediction (from 18 months ago, to boot):
So there Macrobusiness is, dragged kicking and screaminging to once again acknowledging that the Precise Place where Peachy Pointed is indeed the place where we must go.
Welcome to Peachystan, indeed!