The Dow Jones Industrial Average today closed down 512 points—the biggest one-day fall since the 2008 financial crisis—in the wake of the stitched-up deal hammered out in the U.S. Congress on raising the debt ceiling. Carnage is expected today on the Australian markets which open in three hours’ time; I’ll keep you posted.
Well, duh. The purest judge of all, the open market, has handed down its verdict on the performance of the government. And not just the United States; renewed calls are expected today for the Gillard government here to at the very least delay the Carbon Tax set to commence on 1st July 2012. Given she must now know the tax is the electoral equivalent of a pair of concrete boots, this might just be the excuse Labor needs to back away from it.
Meantime, the Mises Institute’s daily periodical had this fascinating article on the various means by which the U.S Fed could, if pressed, create money out of thin air. Given the current situation, it may not be as far-fetched as some may have thought only a year ago.
That’s all from me today folks. I’m afraid my health has gone backwards the past few days; the whole house is coughing up a lung. I heard on the grapevine yesterday that a large number of cases in Southern Tasmania are turning into pneumonia, which is just what I don’t need as my in-tray is piled high. So a few promised articles may have to wait a bit longer. As I said yesterday though, interesting times.