swan stuffs australian economy, page-7

I am not sure we should gloat here CW, its blatantly obvious to all and sundry that the Australian economy is going into the same tailspin that the rest of the is already in!

Only a real idiot would keep chanting the ALP mantra that all is well as the stats are lagging months behind. All is not well in Kansas, Dorothy!

The AUD term structure shows the RBA is way behind the curve and we are going to see a rate cut imminently. I also think we are going to see the 3-10 yr yields fall as a result, despite the fact that the country's borrowing is out of control and terms of trade are looking dicier.

My read is the AUD is about to fall back to normal levels; maybe even 70-80c range again.