to be or not to be...qe is here to stay, page-4

kp, what must be considered is that CBs would know the outcome of a stimulus program out of control.

I have no problem with our RBA keeping out of it all and with the new government, probably for two terms at least, being conservative we shouldn't suffer the destruction of our currency.

Trying to predict what will be the path down which the global financial and economic systems will travel is near impossible because of the unpredictability of markets.

Our stock market will provide perhaps modest gains and falls but there is the problem of hot money moving into our economy for a safe haven which could drive up asset prices quite considerably.

But outside our shores is the hunt for currency devaluation to keep pace with inflation. So maybe in two year increments the ratios moves like this:

1 AUD= 1.04USD = 97.5Y = E128 = $1,500 Gold = $3.5T QE total agg.

1 AUD= 1.20USD = 125Y = E1.15 = $2,800 Gold = $6.5T QE "

1 AUD= 1.55USD = 190Y = E.95 = $7,000 Gold = $8.5T QE "

1 AUD= 1.95USD = 300Y = E.75 = $12,000 Gold = $15.5T QE "

10y T-bills could be at 15% attempting to keep up with inflationary pressures.

So in six years inflation is rampant in Europe, the US and Japan, China just might have diabolical financial and civil problems and our isolation may keep us safe but our three largest trading partners have massive problems.

Nothing to do but sit back and watch.