Glenn stevens is worried as Australia needs to put up the cash...

Glenn stevens is worried as Australia needs to put up the cash rate but cant at the moment because everyone else has a 0% cash rate, so this makes the Australian $ more favorable, but he wants to drop the value of the $AU so is holding off.

America has printed a few Trillion $ now with their QE which is forcing inflation up, soon the US will be forced to up its cash rate which then means the RBA can do the same here without risking a spike in the price of the $AU

So he is worried that if people keep borrowing large, when the cash rate goes up 2% back to normal levels it will break everyone.

This is what he warned Australians in 2010, which is when US was hitting their QE button hard..

"I think it is a mistake to assume that a riskless, easy guaranteed way to prosperity is just to be leveraged up into property. It isn't going to be that easy,"