superannuation funds poised to lose 50 billion, page-25

Moly

Not only does our high interest rates effect our exports via a stronger A$ but it also attracts huge amounts of 'hot' or 'carry trade' money which in turn strengthens our $ ...... perpetual motion machine.

At the moment this non-productive stimulus on our currency is masked by the minerals boom ie we are able to pay the interest outflow to the carry traders via the inflow from the mining boom.
But in reality we are just throwing away the boom cash to an economist's 'theory'.
This is demonstrated by the fact that regardless of the world going through the biggest boom of all time AND Australia being in the premier position to capitalise on that boom ie a boom within a boom, our balance of trade continues to blow out.
Heaven help us if (when) the minerals boom ends.