Commodity prices have been having such a rough ride in recent weeks that it has been nigh on impossible to keep up!
Variously crude oil, coal iron ore, copper and silver have all been severely tested, with many other commodity prices facing Olympic standard headwinds (that said, there was at last a serious bounce in silver and gold, and to a lesser extent crude, iron ore and other commodity prices overnight).
The flip side to this is that Australian companies have been exporting unprecedented volumes of commodities, with export volumes rising and rising...and rising.
That's great, and indeed was the very object of the mining construction boom! There are no free lunches, however, a core idea of economics.
Some possible consequences? Here are just a few...but there are more...
1 - Resources Stocks Smash-Up?
The RBA's index is weighted towards the commodities there are of most importance to Australia.
The index was down by another 1.8 percent in November to be a rather dramatic 18.6 percent down over the past year, driven by the fall in Australia's key bulk commodity prices.
Some obvious challenges ahead for the share price valuations of the smaller and more marginal resources companies.
2 - Lower Aussie Dollar?
3 - Lower Interest Rates
Low interest rates are having some impact, but it still seems unclear whether the cuts delivered to date will get enough traction.
4 - Slower Incomes Growth?
Yes. Indeed, this is already happening, as I considered from the State Accounts data here.
The mining boom drove wages higher quickly, but now we are likely to experience the drag as we come down the other side and there exists slack in the labour force.
There are other impacts to consider, of course.
GDP figures are retrospective, though, and as futures markets suggest, the economy might need a bit more of a push from lower interest rates yet.