pugnacious,I agree - the wheels can fall off far faster than...

pugnacious,

I agree - the wheels can fall off far faster than most people appreciate. The government has been spending money like a drunken sailor and handing out bank guarantees like they were How to Vote cards. Meanwhile, China must be reaching saturation point for all those base metals they're ferreting away. As the US showed, when the ball starts moving down the mountain, all it does is gather speed.



So, yes we're not there yet, but that doesn't mean the RBA wouldn't go from 3% to QE in, say, 6 months if the need arose.

Here's the US graph of the above metrics. They are about a year further down the track than we are:-