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."

Tuesday, October 9, 2012

Iron ore prices now up 27% since RBA decided to cut rates--on back of prices falling

Ahhhh, I warned the RBA of this problem: the perils of predicating monetary policy on fickle financial markets data. Iron ore prices are now 27% higher than their low on 4 September, which was basically when the RBA pre-committed itself to cutting the cash rate in October on the basis of the iron ore price falls...Here is the Bloomberg chart of spot iron ore prices since 1 August. This is also precisely why we need more media commentators questioning RBA policy rather than slavishly following the central bank's talking points...