australia will be a casualty of currency wars

  1. 33 Posts.
    "The RBA's plan for Australia appears to involve replacing the mining investment boom with housing.

    It can't get the dollar down because it's in a currency cannon war with a popgun, but it can cut rates a lot more to at least get the housing market moving. And that's what it will do."

    http://www.abc.net.au/news/2012-12-19/kohler-currency-wars/4435690

    Surely not too much higher the housing market can move, not quickly anyway.

    High AUD + Low IR + High cost of housing + decreasing manufacturing + rising unemployment as mining boom winds down = An bleak outlook for Oz in 2013

 
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