Tuesday, 7 July 2015

Straight from the Horse's Mouth.

h/t Houses and Holes (Macrobusiness):
"PRIME MINISTER: Ok, do we have any questions?
"QUESTION: Prime Minister, how concerned are you about the problems in China and Greece, those economic problems spreading to Australia and especially the plunge in the Chinese stock prices?
"PRIME MINISTER: Michael, look, the important thing is to do whatever we can to build a strong and prosperous economy locally, and again I get back to the Grocery Code of Conduct. This is about ensuring that we have the strongest possible local businesses to supply the strongest possible local businesses. We have a great supermarket system. That rests on the shoulders of great local suppliers and this is about ensuring that we continue to have very strong local suppliers, best possible product at the best possible price so that we get the best possible deal for consumers – and if we do that we will avoid the problems that we see overseas". (here)
[Bloody blah, bloody blah]
"QUESTION: PM, are you concerned that the Chinese Government potentially has intervened in their stock market to try and prop it up given the losses that have been experienced over the last two weeks?
"PRIME MINISTER: Well, again, look, I’m not going to offer a running commentary on what other governments do. My business today and every day is to ensure our country is in the best possible position to deal with whatever comes. Whether it be challenges to our economic security, whether it be challenges to our national security, the job of this Government is to make our country as strong as it possibly can be and that’s why the small business budget boost was so important with the instant asset write-off which has done so much to boost confidence, and that’s why today’s Grocery Code of Conduct is so important. It’s all about producing stronger local businesses and if we’ve got stronger local businesses, we’ll have a stronger economy and we’ll be very well placed to deal with whatever the future throws at us."
Paraphrasing PM Abbott, well, again, look, he's not concerned at all about the terrifying power of Keynes' digestion Animal Spirits.

But, but, but, all local VSPs are really, really concerned …

So, what gives? Is the Animal Spirits for real or maybe Abbott -- believe it or not -- for once is right?


Man, you've gotta love the Animal Spirits/Confidence Fairy thing: it may not explain shit, but it gives me hours of fun.

08-07-2015. Minutes after posting this, Houses and Holes posted this:

"The Shanghai stock market is open and down she goes 8%:"


Animal Spirits!