bill3173 - passion in your xjo posts tuesday, page-72

Hi Sck,

who does have credibility?

I agree with the sentiment of interest rates however who would control interest rates in a free market?

Banks


Do you think Banks would do a fair and responsible job in controlling the price they borrow money at? I don't

It may not be ideal but the current structure is the closest to neutral possible. Fwiw I think Stevens did the right thing yesterday, someone posted the other day interest rates were cheap, I agree.


On the AUD question, thanks for having a go but the answers don't relate to the question. I'll word it differently, in the 1970s our dollar was trading at levels between 125 and 150 AUD. At that time our economy was strong and at the early stages of a growth period. The 70's built the foundation that lead to the rally of the 80s and ultimate crash in 87.

So from the scenario of the 70s where a high AUD had negligible negative affect, how has our world changed so much that now it will cause significant damage?

An example, I was having a talk to a friend that owns a car yard about the AUD, his feeling was that above 120aud the used car market would be hit hard. So would it, or would it simply adjust to the new market? Used car values decrease, people lose on value however gain on a decrease in new car value, the market evolves and adjusts.

So do we suffer, in which case where do we suffer, or do we adjust?


Cheers