Fundamentals haven't changed, page-440

@Ophir
@Seth Davis
@AverageJoe
@Hyperion Silver
@Seth Davis

Finally a 4 Corners about household debt and house prices in Australia. Probably the biggest risk to the AUD. Interesting Narev standing down as household debt is at record highs , AUSTRAC/ASIC investigates transactions and a possible royal commission if Labour wins the next election that may be a red flag. While politicians debate dual citizenship and plebiscites the real risk is rising. I think its worth watching...looking at the previews I think it includes David Tepper one of the investors looking to short this. I think its highly worth watching aside from Game of Thrones LOL. Gold is traded in AUD, a fall in the AUD/USD gold goes upwards significantly.

"If there's a shock to the economy, that potentially leads to a rise in sensitivity to the banking sector. The banks could in fact experience higher losses because households are more indebted." Ratings agency analyst

http://www.abc.net.au/4corners/stories/2017/08/17/4719901.htm

As interest rates have fallen from 1990 on wards household debt has soared.


source: https://tradingeconomics.com/australia/households-debt-to-gdp'>tradingeconomics.com</a>


Interesting as central bank debt has increased so private loan


source: https://tradingeconomics.com/australia/loans-to-private-sector'>tradingeconomics.com</a>

Australian central bank balance and Australia debt to gdp levels. WOW. The Australia central bank may have a hand in this. I would not want to be working at RBA right now.....interesting as well that Glen Stevens stands down looking at these statistics.


source: https://tradingeconomics.com/australia/central-bank-balance-sheet'>tradingeconomics.com</a>



source: https://tradingeconomics.com/australia/loans-to-private-sector'>tradingeconomics.com</a>