re: housing to crash again..longhair Wrong again honey. They...

re: housing to crash again..longhair Wrong again honey. They don't have to lend through Australian banks in Yen. They are selling their goods and want our (read Australian) foreign exchange from our own reserves. Thats what they get in return.

You don't necessarily have to demand your payments in the currency of your own country. Thats what created the phenomenon of "Euro Dollars" a money not under the control of its domicile.

Yes the Japanese did lend on the sale of capital equipment. I did not say they lent to buy Australian houses and terribly sorry if thats the inference you drew. It was a separate point on the overall economy that I was lluding to.

As for the other effects of the so called housing boom, the capital expenditure sure enough goes into the house. The money is from our exports indirectly and from other sources within the economy to simplify the point.

But when you cannot preserve those reserves at least to a reasonable level you are losing. We export to the Japanese and then we export our reserves when we buy from them and the Chinese. It is not always a US dollar or Yen trade. It can come in any form and the Japanese are more sophisticated than you or I.

All of the white goods that go into maintaining that elusive mortaged house at least 70% of them from a Sydney University study purchased since 1998 are borrowed and financed through further mortgaging the house.

So what we earn in foreign reserves in the 1st instance in exporting and working towards those exports get pulled out again through the export of our currency reserves. Get it now!!! They are not asking for Aussie dollars to pay for their good. We are hardly a valuable trading currency. They demand US dollars, Yen or D Marks from us as payment. And that payment then comes out of our reserves of those currencies we earned by exporting to those countries.

It has nothing to do with Racism. It has a lot to do with an unequal playing field like exporting to Japan without them having to quarantine our perishables till they rot (old Japanese custom). And the other reason is that our spineless politicians kow tow to them all.

John Howard created a private debt scenario even Regan would have been proud of. Today the Chinese can with the stroke of a pen make our dollar worthless. They learned all of this from the honourable Mr. Soros and the art of speculation and speculating on other peoples currency in the name off the free market regardless of the consequences to anyone. People don't matter. It is profits.

You will never dislodge the number of illegals and illegal funds comming in through Australia via legal means to pay exhorbitant prices for houses, then on sell it to other laundrymen for a greater price then come out with the money cleaned, from property speculation. Banks are lending to people who deposit illicit cash with them abroad and you better believe it.Our banks. We are not getting the cream of the crop but a large part of the sc um but we can't differentiate.

Read Richard Hall on the death of Victor Chang. I lived with these clowns.