Dear thecook, Do not blame glenn, he is really in dilema. raise the rate will push the AuD higher. touriam, export, and manufacturing will suffer furhter. with 30% funding from offshore, we have lost the control of our own fate. RBA rate has its weight, but not even the most important one now. It is funny that some people still believe that RBA can fully decide our mortgage rate. If inflation out of control, captital flight will occur and overseas institutions will charge much higher premium to our banks and the banks have to pay much higher interest to get funding onshore as well. The result will be the same. I like to remind everyone willing to listen out of goodwill that America's nearly zero rate is temporaty. Deleveraging has begun. by the end of 2012 or early 2013, American will start to raise the rate, China will be the first one over. and then... if anyone still has not realise the gravity of the situation today, he should not blame anyone when armegedon comes. you still have the time to escape, not much longer.
