The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Thursday, December 16, 2010

Global investment has been declining since 1970s--which explains decline in rates

But according to McKinsey, that is all about to change. We are about to embark on a secular increase in investment in the emerging world (EW), and a secular decline in savings via ageing of populations and much greater EW consumption. All of this means we get higher long-term interest rates, or so they reckon...The RBA has a similar thesis.

at 5:51 AM