Wry & Dry #39-25 Egos at 20 paces. Singed beard. Goldilocks GDP.
When the two biggest egos in the world start throwing verbal rocks at each other, why would the media worry about Trumpster’s phone chat with Emperor Eleven (on tariffs) and meeting with German Chancellor Friedrich Merz (Ukraine)? It didn’t.
It all started when Musk labelled Trumpster’s budget as an ‘abomination.’ Trumpster’s glass jaw then shattered into a thousand pieces. And that’s when ego overtook rationality. The exchange of insults blotted out the sun.
Your Investments and the National Accounts
The latest ‘National Accounts’ (i.e. GDP and how its constituents contributed) released (this week) give cause to reflect on how your investments consider trends in the data.
The National Accounts is the scorecard for the RBA, politicians and policymakers alike.
It is useful to be reminded that the RBA and the US Fed have roughly similar aims.
“The Federal Reserve’s dual mandate is maximum employment and price stability. In its simplest terms, we want everyone who wants a job to be able to find one and for inflation to average 2 per cent per year.” John C. Williams, President and CEO, Federal Reserve Bank of San Francisco (March 2016)
In Australia, the Reserve Bank Act 1959 notes the Board’s duty to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people.
Similar goals often inform politicians, although it can reasonably be said that pure power and politics also play a part in their motivations.