Nothing makes a bank economist and FIRE sector spruiker happier than the ongoing deflationary pressures generated by a mountain of debt around the globe and the masses of mal-investment driven by the recent history of Central Bank “bait rates”.
Deflationary pressures mean they can shout from the roof tops that the RBA no longer has any excuse for not threading a larger and fatter “low interest rate” worm on the debt peddler “hook”.
“Come on Governor Glenn give us a boost – clearance rates have plummeted below 80%”
“We need some stimulation and we need it now”
“Demand for our loans is starting to wilt – cut rates to put some lead in our pencils”
It is the same old cynical story – demand more of the infection that produces the infirmity.