interest rates down and not a single post? wow, page-6

Expect the RBA to slash interest rates throughout 2012 & beyond as they chase the market down.

And the pundits think because we have further to cut that Australia is more protected from a financial crisis than other countries with lower rates of interest. However, those with an historical understanding of deflating credit bubbles actually realize that having further to cut merely means we have further to fall.

That view is shared by The Economist magazine survey of global house prices which found that Australian house prices are overvalued by 53 percent on a rent-to-house price ratio and 38 percent on a income-to-house price ratio.

With credit demand deflating, declining interest rates are actually a sign of concern that will eventually turn to desperation as the RBA continues to cut rates (just as central banks in Japan, USA, Europe & UK are been forced to do). As the Great Deflation intensifies, the race towards 0% by major central bankers around the world is on in earnest.