Pug - I invest in gold as I believe all currencies will devalue against it. Obviously some more than others.. The AUD will probably do better than most western currencies.
As for my other comments, I haven't got the FinR with me, so was just going by what you wrote in the first post. It came across as though he was talking about the immediate future ie we should do it now. That I thought was crazy. If he's talking about in the distance, then........well we'll have to wait and see if its necessary. To me QE is always poor economic policy. Its better for long term prosperity to take your medicine rather than prolong the inevitable (which if prolonged will be far worse than taking medicine as soon as is needed).
Gold can rise in AUD without QE. Has done for the last 6 years, so I don't think we need QE for it to continue.
As for the comment on China, I believe (rightly or wrongly) that over the next 2-3 decades, Australia will become one of China's most important partners. We have what they need to industrialise. They know the mineral wealth we have and as such I can't see why they wouldn't invest in our bonds on a large scale, knowing that we have mineral wealth to 'back them up'
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