Blog/Australia & Oceania
Posted Dec 20, 2015 by Martin Armstrong
MA, OH things are bad out West.. the commodity downturn – oil and gas, basic metals – Iron ore Copper etc…and the housing market is the worst there OF all the Australian states :arrears and non performing past 90days is around 4% on owner occupied residential
…El’nineo has screwed the current (and looking like the up coming winter crop–for Australia) wheat crop– which is large for Western Australia….. WA’s unemployment, as measured by the lie statistics, is 50% higher than the national average % reported… head of NAB was out there talking which means a bad smell… of probably portfolio problems….
History says “whatever starts in the West heads east” on the economic front…Correct me there if I’m wrong MA…well it was that way in the US of A’s history anyway..
REPLY: True. In part, they sell the stocks following oil out of fear that a collapse in commodities will bring further economic decline to the world economy. Interesting twist going on right now. Lower commodities means more deflation.