If property downturn starts to bring down the rest of the economy you can be guaranteed they will lower rates. The deputy governor in a speech a few weeks ago even talked about QE if the economy really tanked. This is completely insane of course and would trash the currency. That is when you want to hold some really marginal, high-cost local gold producers.
The central banks only know stimulus as a solution to problems, even though over stimulation has largely been the cause of the problems. The RBA even have the luxury of just following the other central banks who have turned QE into ‘convential’ policy over the last 10 years.
‘To a man with a hammer, everything looks like a nail’ - Mark Twain.
DCN Price at posting:
$2.47 Sentiment: Buy Disclosure: Held
