So after a week which saw journalists under attack for suggesting all might not be tip top for the Australian economy (Wayne Swan's Treasury note here and the denials about the shrinking Western Australian miracle here), there is now talk of QE as the short cut to restoring dollar competitiveness.
Readers all around will be familiar with the money printing in the US and UK which though lowering the respective exchange rates has corroded savings and stoked inflation. In Australia, a similar trade off putting ordinary Australians second to the finance sector looms and readers might consider it an open sign of failure by the Australian ruling class. That or a belated stumble to catch up in the currency war. Quotes below and stay tuned for more.
Readers all around will be familiar with the money printing in the US and UK which though lowering the respective exchange rates has corroded savings and stoked inflation. In Australia, a similar trade off putting ordinary Australians second to the finance sector looms and readers might consider it an open sign of failure by the Australian ruling class. That or a belated stumble to catch up in the currency war. Quotes below and stay tuned for more.
With the non-mining sectors of the Australian economy responding less promptly to lower interest rates than in history would suggest, and the A$ still at elevated levels by historical standards, in our view the chances of a smooth ‘baton change’ between growth led by resources investment and growth led by exports and other components of domestic demand are declining.(here)
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