An Australian rout

Posted: September 30, 2015 in Uncategorized

Yesterday all the commodities base countries in particular got wiped out (Australia Canada Brasil Russia…). All out of a Glencore analyst pessimist view in London.
Now commodities are at low and it is no time to panic.

But you can point fingers. In Australia the culprit is wx PM Howard. Why? In the longest commodities boom he just handed over money to tax payers (tax concessions, negative gearing) instead of preparing the country for the after boom. So, for how much I dislike them, do not blame or praise Rudd, Gillard or Abbot for the outcome.

What is worst is that people do not realize the link between commodities banks and real estate.

But PM Howard is not alone. Every politician did the same. Actually in this case President Putin is the worst. As good he is in foreign policies (KGB school), even without the election issue, he failed to use the commodities boom to prepare economically Russia for the US showdown.

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