Not trying to sound dramatic but the bigger the boom the bigger the bust. I do worry for the average punter.
Also, the bigger the boom the more complacent people are about the ensuing bust.
In my opinion the RBA policies have been supporting dutch disease and if I remember correctly a few years ago Glen Stephens gave a speech on the two speed economy and how we should be supporting the mining industry. This was also called a 'structural shift towards mining'.
Can't believe a central bank would openly support policies which support dutch disease. Where because of the demand for commodities making for a higher dollar other domestic industries can't compete internationally and so disappear and eventually mining becomes the biggest industry, however when the commodities bust or all get mined-out there is nothing left. Does this sound familiar with what is happening now?
