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Originally posted by nordesmic ↑

If property downturn starts to bring down the rest of the economy you can be guaranteed they will lower rates. The deputy governor in a speech a few weeks ago even talked about QE if the economy really tanked. This is completely insane of course and would trash the currency. That is when you want to hold some really marginal, high-cost local gold producers.

The central banks only know stimulus as a solution to problems, even though over stimulation has largely been the cause of the problems. The RBA even have the luxury of just following the other central banks who have turned QE into ‘convential’ policy over the last 10 years.

‘To a man with a hammer, everything looks like a nail’ - Mark Twain.

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QE in Australia?? I can't see that happening and if it does Australia will truly become Paul Keating's Banana Repubiic.

We have flirted with helicopter money with Peter Costello's baby bonus (have one for mum, one for dad and one for the country) or should have that been called the "Flat Screen" bonus. I spent that bonus on a more speculative pursuit, the storing/freezing my new son's embryonic stem cells.

Then we had Rudd's 2009, $42 billion cash and infrastructure (school hall) GFC stimulus and the controversial $2.8 billion home insulation program, part of the bigger $3.9 billion Energy Efficient Homes Package in the same year.

I'd think a give away in Australia is a more likely approach than printing money. Government debt is not a huge issue in Australia, the problem is private debt. Once again caused by the banksters spinning up housing values. Ask yourself who approves loans? The banks. Ask yourself who values properties to form the basis for the approvals for homes? The banks. Ask yourself who invented revolving home loans, interest only home loans, and mortgage protection insurance that protects the mortgagee (lender/bank) not the mortagor (borrower)? The banks. Ask yourself who are the only people in control of upwardly spiralling house prices? The banks. Esh