The Single Biggest Reason Why I Will Vote For Bob Katter’s Australian Party

18 Feb

The Australian Dollar.

It is way too high relative to all our major trading partners’ currencies.

About 30% too high, in fact.

No Malcolm Farr, it does not prove that the Aussie Dollar is a “safe haven”.

No Wayne Swan, it is not because we have an economy that is “the envy of the world”.

Yes Alan Kohler, it is because speculators are borrowing billions in Zero Interest Rate Policy (ZIRP) money in the USA, UK, EU et al, and using it to gamble on the relatively high interest rate Aussie Dollar. To make easy, fast profits.

It is called the “carry trade”.

Or “hot money”.

And it seems that no one … repeat NO ONE … in Australian politics has the brains to recognise that fact. Or, the balls to do anything about it.

Except Bob Katter.

Now, let me be the first to say that I do not agree with how Bob wants to weaken the currency.

He advocates forcing the RBA to slash interest rates to 2%.

I think we should follow the lead of China … and Switzerland … and introduce a currency peg.

Nevertheless, despite this difference in preferred method, the simple fact that Bob has loudly proclaimed that he wants to weaken the dollar, and, that he is prepared to dismantle the RBA if necessary in order to do so, places him a country mile ahead of any other politician in the nation.

(Yes, including my beloved debt-warning prophet Barnaby Joyce, whose office has to date not even responded to my communications on this matter. He has been very busy with a drowned home town though, so we shall wait and see…)

A little historical background on our present currency dilemma.

Remember the year prior to the GFC crescendo in September-October 2008?

Remember how the AUD turned sharply down in July 2007, falling 9c (10%) in less than a month, when the warning signs began in the USA with the collapse of two Bear Stearns’ hedge funds? And remember how the AUD turned sharply up again, when the RBA lifted interest rates for the first time in 9 months, in August 2007?

GFC begins July 2007 in USA | Click to enlarge

Remember how the RBA kept raising interest rates into the teeth of the oncoming storm, and the AUD climbed from less than 80c US in August 2007, to nearly 98c US in July 2008 … a 21% appreciation in less than a year?

Remember how the AUD fell off a cliff when the GFC peaked? Indeed, it fell so far so fast – a near 40% collapse from 98c to 60c in just a few months – that the RBA intervened in foreign exchange markets to prop up the dollar:

Click to enlarge

“Safe haven” currency, you say (Malcolm Farr)?

Utter ignorant nonsense!

The Aussie Dollar is a “speculative play”.

A profit-seekers’ gamble.

That rushing tide of “hot money” driving up the AUD exchange rate is just as likely to race out again, exactly as it did in the GFC.

But until it does, and the AUD returns to a reasonable and sustainable level, vital sectors of the Australian economy are rapidly being white-anted … and jobs destroyed in the process.

Manufacturing. Tourism. Retail. Education (ie, foreign students). To name but a few.

Many of those industries and the jobs they provide, once lost, will never come back.

And despite this disaster occurring all around us right now, both “sides” of Australian politics have done a Pontius Pilate impersonation, washing their hands of the problem, proclaiming that there’s “nothing we can do” about the dollar. That’s up to the “independent” RBA, you see. And woe betide anyone daring to question the sanctity of the RBA’s “independence”. So instead, we have an escalating, puerile argument over whether or not (and how much) to financially support affected industries.

With more borrowed money, of course.

Idiots. Invertebrates. Sans testicles.

In stark demonstration of the clueless eunuch status of both “sides” of Australian politics – and indeed, of the “independent” Reserve Bank of Australia – on the matter of dealing with a speculator-driven appreciation in your national currency, let us examine a favourite example of mine.


Unlike the RBA’s Glenn Stevens, the Norwegian central bank governor recognises the dangers of a government over-relying on the nation’s commodities wealth, spending too much money, and putting its manufacturing industry at risk (sound familiar?):

Feb. 16 (Bloomberg) — Norway’s central bank Governor Oeystein Olsen told the government to spend less of the country’s oil money and avoid an over-reliance on its commodities wealth or risk killing manufacturing jobs.

The government should tighten its fiscal policy guidelines and limit the use of petroleum revenue to 3 percent of Norway’s sovereign wealth fund from the current 4 percent, Olsen said today in the text of his annual speech on the economy and monetary policy.

“Even though petroleum revenues are phased in gradually, a phasing out of manufacturing and other private industries may not be as smooth,” he said. “Entire industries could be lost. If spending proves to be excessive, such structural changes may be difficult, or impossible, to reverse.”

The world’s seventh-largest oil exporter, which boasts the biggest budget surplus of any AAA rated nation, has largely been shielded from the global financial crisis, in part after spending a record amount of its oil money.

Witness the stark contrast to our own Reserve Bank board of governors.

They have repeatedly indicated that they believe in crowding out (ie, screwing) the rest of the economy, to “make room” for the mining boom. Your non-mining industry and job be damned.

The high Australian dollar is actually great news to the RBA. It is helping their goal of hollowing out the rest of the economy, to “make room” for more mining.

And the high dollar is also great news to the village idiot of our national government, Treasurer Wayne Swan. With little else of substance to boast of, he proudly and deceitfully points to the high dollar as somehow representing “proof” of his own wonderful economic management!

But it is not just concerns about how the government is running the country, short-sightedly squandering its natural advantages, that show parallels between Australia and Norway.

The Norwegians too, have been faced with the problem of speculator-driven “hot money” driving up the value of their currency.

Thanks to the ongoing European debt crisis, in 2010-11 “investors” (read also, “speculators”) had been selling (borrowing) the near zero-interest-rate Euro currency, and investing (speculating) in the traditional “safe haven” currency, the Swiss Franc.  As a result, the Swiss Franc had been rising precipitously, causing problems for their economy. So, in September last year, the Swiss central bank acted to protect their economy, by pegging the value of the Franc to the Euro.


With the Swiss central bank effectively having put a cap on their potential profits, the European “hot money” went looking for profits elsewhere. They turned to Norway, with their strong economy, budget surpluses, vast nationalised commodities wealth, and AAA rating.

Now, witness the contrast between Norway’s central bank response to “hot money” flowing their way, and our RBA’s response to exactly the same situation:

Feb. 17 (Bloomberg) — Norway’s central bank is monitoring the krone after its recent gains and remains ready to act should the currency’s appreciation warrant a response, Governor Oeystein Olsen said.

“We follow closely the krone developments,” he said yesterday in an interview in Oslo. “We have observed, of course, the recent development of the krone, we’re close to the level” in September, when it touched an eight-year high, he said.

The central bank, which in December lowered its main rate by half a percentage point to 1.75 percent, will respond to krone swings to the extent that they affect inflation. The currency this week touched the highest level since Sept. 8, when the Swiss National Bank’s decision to peg the franc to the euro prompted investors to seek alternative havens…

The exchange rate continues to be a “challenge” for the government, Trade Minister Trond Giske said Feb. 13. The central bank in September signaled it was ready to take steps to curb the krone’s appreciation. Those comments helped weaken the exchange rate, triggering a 4.8 percent decline from a Sept. 8 peak through a trough two weeks later.

The Norwegian central bank acted promptly, to “talk down” the Krone back in September. It worked, for a little while.  Then they slashed interest rates by an effective 22.2% (2.25 to 1.75) in one hit in December. And now that their currency is appreciating again, they are attempting to “talk down” their currency, by reminding markets that they stand ready to act again, to protect local jobs and industry.

Our central bank is doing nothing.

Indeed, they are happy that we have an over-valued dollar that is squeezing (ie, wiping out) the “old economy” sectors.

Because it wants the non-mining sectors of the economy to shrink (ie, die), in order to “make room” for mining, which the RBA mistakenly believes will enjoy a multi-decade boom.

This is your rapidly approaching future, dear reader.

Gillard’s “New Economy”.

Australia. “Poor white trash” quarry to the world.

There are some in the Australian (alternative) financial media who have written on this problem.

The estimable “Houses and Holes” – whose clever nom de plume sardonically depicts the long-running economic policy/vision of both “sides” of Australian politics – and his team at Macro Business is a standout example.

Unfortunately, it is apparent to this humble blogger that few if any in the mainstream financial commentariat have any greater “vision” than the clueless eunuchs in Canberra for whom they act as Press agents.

So if anything is going to be done about the Aussie Dollar, it will only happen if you, dear reader, are concerned enough about the future of this country (and your job) to take action yourself.

You can start by doing as I have been doing.

Contact the invertebrates in Canberra.






Point out to the self-interested, overpaid, trough swilling imbeciles on both “sides” of Australian politics that there is no excuse … none … for Australia’s government and Reserve Bank deliberately failing to act to address the root of the problem – a speculator-driven AUD exchange rate.

Other “safe havens” have done it.

Switzerland has done it.

Norway has done it.

Indeed, one of the keys to China’s economic success story, has been its use of an adjustable currency peg, which has allowed their industries time to adapt to changing economic and market conditions:

Click to enlarge

You see, dear reader, our politicians, Treasury bureaucrats (looking at you, Martin “Mini-me” Parkinson!), and Reserve Bank governors are simply too beholden to flawed and failed economic ideologies.


Laissez faire capitalism.

“Free trade”.

“Free markets”.


“Government debts don’t matter, if you have your own currency … you can just print, and inflate your debts away”.

They fail to recognise that the world has fundamentally changed since 2008.

Thirty-plus years of global debt-binging is over.

The masses have had their long overdue big fright … and have begun to wake up.

Debt is not the new black. It is the old red.©

And as a result, an over-leveraged debt-laden world economy, is now de-leveraging.

And in the inevitable race to the bottom, “currency wars” (ie, devaluing your currency) are a key factor.

Australia’s major trading partners are Japan and China. Both protect local industry, with a weak currency. Zero Interest Rate Policy (ZIRP) for Japan. A currency peg for China.

The USA, UK, and the European Union are all trying to protect their economies, to support and restore their manufacturing sectors, by weakening their currencies through ZIRP, QE (Quantitative Easing ie, printing money), and similar schemes via their central banks.

As usual, Australia is roughly 3 years behind the rest of the world.

But the currency wars is not a game that one can win by coming from way way behind.

Accept no excuses from our political “servants”.

Every other major “developed economy” on the planet is supporting local industry and jobs, by acting to ensure and maintain a weak currency.

Only Australia is doing nothing.

Call, write, or email our politicians now.

And if they give you the same (indeed, any) pathetic, close-minded, imbecilic excuses for not acting on the over-valued, speculator-driven Aussie dollar?

KAP the useless bastards.

Vote 1 Bob Katter.

Vote 1 Katter’s Australian Party.

If the “old” parties won’t act on the most urgent issues facing the nation … I will vote for someone who will.

And will loudly proclaim my intent, all the way to the next election.


By the way … do not fall for the Coalition’s line, that job losses and business shutdowns are due to businesses preparing for the carbon “tax”. Regular readers know that I have been and remain a vehement opponent of the banksters’ CO2 derivatives scam … and even I don’t buy that bullshit.

Sure, job losses will inevitably mount when the derivatives scam launches.

But right now, job losses and business shutdowns are primarily a result of the speculator-driven AUD:

Death knell looms for Caltex jobs

The global dance of death could come quickly to Caltex’s two refineries after it slashed the value of its refining assets by $1.5 billion due to a confluence of factors strangling profits in this part of its business.

It is another example of Australia’s manufacturing going to the wall due to the strong Australian dollar, rising costs and stiff competition from Asia.

The rise of big Asian refineries with an overcapacity of product is turning the screws for local operators and has prompted Caltex management to announce a strategic review of two key refineries of its own – the Kurnell plant in Sydney and Lytton in Brisbane.

And this comes on the heels of Caltex closing one of its petrol-making units at Kurnell last year.

The review was instigated six months ago and is expected to take another six months before investors and customers know the verdict, which could include the sale, closure or further investment in the business.

Given today’s writedown of $1.5 billion of assets due to expectations of a prolonged period of pain, the market is expecting the review will recommend closure of at least one of these two plants which convert oil into petrol and diesel.

Indeed, Caltex supplies one third of Australia’s transport fuels, so the review will need to make sure it does not adversely impact its customers.

Soon, we will not only have given up our food security, by selling the farm to foreigners.

We will not only have sold off our mineral wealth and sent the profits abroad, thanks to a disaster-in-waiting “mining tax” that will actually help the Big 3 multi-national miners to grow their oligopoly.

Soon, we will have given up fuel security too.

And with no manufacturing sector left either, well, any future war would be fun, wouldn’t it?

Carbon permit face-slapping, anyone?  To the death?

Oh wait … they’re not even paper.

They’re just electronic digits.

Exactly like your “cash” in the bank.


Lighthouse Securities’ Greg McKenna, aka “Deus Forex Machina” at Macro Business, has written an excellent overview on this problem too:

The Australian Dollar is higher than it has been in decades. Indeed it is more than 30 cents higher than the average since it was floated in December 1983. Yet while we see businesses constantly in the news contemplating or actualising job losses and off shoring the arms of government and policy makers here in Australia can’t, won’t or don’t want to do anything about it.

This is at a time when most countries in the globe seem intent on manipulating there currency to the best advantage that they can.

I still call the Aussie Dollar “the battler” – its a legacy of it past when it always caught pneumonia at the first signs of the slightest global cold. But back then we didn’t have China, a mining boom and a central bank, our beloved RBA, with a structural bias to tighten in a world necessitating the exact opposite for most countries ( if you are interested why here’s a blog I did last April which explains why the RBA has a bias to tighten ).

It doesn’t battle much anymore though does it, well except for supremacy.

But what to do?

We know the RBA and Australian Treasury are on Board with a multi-decade China boom but do they really want to napalm the rest of the economy and just leave us with an economy full of houses and holes.

I hope not but I fear so.

Please read his article. Greg agrees that action to alleviate the impacts of the high AUD is vital. He also has some important insights on the views expressed by Treasury Secretary Martin “Mini-me” Parkinson. But (unlike myself) Greg does not favour a currency peg, and instead prefers and explains an alternative solution.

This is a debate that must be had. And urgently.

I thank Greg for his contributions to stoking the fires of that discussion.

25 Responses to “The Single Biggest Reason Why I Will Vote For Bob Katter’s Australian Party”

  1. Kevin Moore February 18, 2012 at 5:34 pm #

    Kevin Rudds seemingly senseless destablising of the Labour government to my mind has a greater purpose other than to just regain the Prime Ministership. His apparent ambition for a position in the UN run world government, with his membership of the Rio+20 Panel on global sustainability, causes me to think that that their is method in the madness of our politicians. By the Labor goverments massive spending,its massive borrowing,its massive wasting of resources and this nations fast decline in manufacturing industries,which none of it they say is their fault, has more to do with causing the Australian people to have a general loss of faith in our leaders and our parliamentary system.This then makes it easier for the Powers That Be to establish Kevin Rudds and Bob Browns beloved “New World Order.”

    • Paul February 27, 2012 at 11:24 pm #

      Managing a debt crisis by throwing as much money overboard as possible always seemed to me to be a means of actively undermining our currency not stimulating our economy. Global Governance also probably means a global currency system, and such is easier to introduce if you can destroy confidence in the existing national currencies. Everything done to the Euro, US dollar, and our dollar seems calculated to this end, otherwise none of it makes any sense.

  2. bushbunny February 18, 2012 at 5:56 pm #

    What people won’t recognize is one of the best ways to get money invested in Australia is to offer a higher interest rate than is offered else where in the globe. Is this double dipping, when we have to borrow money at an even higher interest rate than overseas or investors? This ultimately goes on these stupid subsidies for investing in clean energy resources, ie. wind turbines and solar farms/panels.

    In the meantime, our manufacturers are failing because their products are over priced in comparison to other countries, i.e., China and Europe and wages higher?

    The crunch will come sooner rather than later. When China or America put up their interest rates and then we’ll be in deep sh…?

    • bushbunny February 18, 2012 at 6:01 pm #

      I meant in borrowing us, here in Australia. While the government runs up debts at what interest rate eh?

  3. Tomorrows Serf February 18, 2012 at 7:35 pm #

    Stranger than fiction:

    Just logged on to find this brilliant assessment of the high Aussie Dollar and the reasons why, (the carry trade) whilst listening to an interview between Chris Martneson and Jim Rickards (author of “Curreny Wars-The Making of the Next Global Crisis) Amazing coincidence. Rickards and Martenson are two of the smartest minds on the planet. No doubt it’ll be posted to Zero Hedge in a day or two, keep your eyes peeled for it.

    Couldn’t agree more BI.. Leave rates high, destroy what’s left of our industrial capacity (a mate of mine is CEO of a national brand being decimated by the high Aussie $), Lower interest rates and destroy the heroes of our society, the “self funded retirees”, those independent souls who refuse to bludge on the welfare state at the expense of their fellow Australians. ZIRP punishes savers and reward fools. Any fool can borrow money (currency) To say nothing of the mal-investment that would occur as a result of lower rates!!

    So what’s left?? Not “free trade”. Not “level playing fields” (thanks Paul Keating). Currency pegs and tariffs. Let’s face it. We’re in a fight for our survival. Desperate times demand desperate measures. And times are getting pretty crazy, so WTF are we doing allowing these scum to undermine the fundamentals of our very fine oasis in the midst of this impending economic firestorm.

    Can’t help but think we’re being led down the path of Greece. Increasing expenses and lower productivity. It’s a very bad trend. Increasing debt and lower income. A very bad trend. Someone once said something very wise,”If you don’t mandage debt, debt manages you”.

    IN the meantime, we have a brand new carbon tax(derivatives trading scheme- thanks Malcom et al).

    Wake up Australia!!

  4. Kevin Moore February 20, 2012 at 9:44 am #

    This is a bit off topic but these two links give an insight into the lengths the puppet masters and their hirelings will go to carry out an agenda – the end justifies the means.

    “The corruption of government and the political sacrifice of an Innocent Woman – Schapelle Corby”

    Zaid Hamid talks about 9/11 ‘Conspiracy Theories’.

  5. Richo February 20, 2012 at 11:35 am #

    While I agree with the general sentiment of this piece, I have to wonder how many industries are the high dollar as a convenient scapegoat.

    Take the car industry for example. They are crying poor over hand outs and getting government handouts yet Holden has a collective agreement in place that sees its workers get a 18% pay rise over 4 years (some get 22%) and productivity provisions. It is a cosy arrangement between the business, the unions and the union friendly government to simply bail out struggling industries citing the dollar as the reason, when there are other factors at play.

    The Coaltion are also complicit because they don’t have the balls to announce chnages to the Fair Work Act. So yet again the person that really gets screwed is the taxpayer.

  6. JMD February 20, 2012 at 12:23 pm #

    Hate to bear the bad news but money market spreads have been tightening so expect to see the AUD strengthen further – of course I could be wrong.

    To be honest TBI, I don’t agree with the concept of devaluation. Devaluation leads to penury, I second Richo above – the high dollar as a convenient scapegoat.

    I take your point about a speculative bubble but the only way to avoid this would be a STABLE AUD, which due to the ever depreciating USD means appreciation of the AUD against the USD. The stability comes from a stable exchange rate in terms of ounces of gold. Even the AUD is failing there.

    Of course a stable gold price means gold redeemability by the RBA. This will happen when hell freezes over, so expect further volatility.

    • The Blissful Ignoramus February 20, 2012 at 12:39 pm #

      “..the only way to avoid this would be a STABLE AUD..”

      Not possible in the (inevitable, happening now) currency wars, and political climate. Not unless “stability” is defined in relative terms, ie, by fixed linkage to others’ currencies.

      I think that (generally speaking) we’re largely on the same page regarding “money”, JMD. I’m taking a pragmatic view with this post. The best we can hope for is to pressure politicians to at least join the currency war, else our economy will (continue to) be white-anted. IMHO, a fixed peg a la China, adjusted according to changing global circumstances, allowing local industry time to try and adjust to a more slowly appreciating AUD, is the best overall compromise – and still only a remotely achievable one – that I can think of under the circumstances.

      • JMD February 20, 2012 at 12:54 pm #

        Yeah… but still TBI, you’re talking about devaluation. Certain industries may be feeling the pinch of a ‘high’ AUD but I think that’s better than everybody having their capital destroyed to prop up those industries. Remember too, anything you buy is cheaper with our ‘strong’ AUD, that includes the investments these industries make in their own business.

        I agree that the AUD may suffer a catastrophic collapse with a reversal of ‘hot money’ but then so can the USD. Why peg to to a financial instrument of even less quality than the AUD?

        • The Blissful Ignoramus February 20, 2012 at 1:22 pm #

          No, I’m suggesting controlling / managing / slowing its relative appreciation, so that we still have some industries vital to a functioning economy and national sovereignty left, when the debt-based system implodes.

          Everyone’s (fiat) “capital” is going to be destroyed anyway. I imagine that if you did not think that were true, you would not be buying gold and advocating that others do the same.

          • JMD February 21, 2012 at 9:13 am #

            “Everyone’s (fiat) “capital” is going to be destroyed anyway.”

            That’s true but realise an implosion of the debt based system IS a catastrophic devaluation. It’s still devaluation, just all of a sudden rather than a slow, purposeful one.

            It’s all capital destruction.

  7. Rod February 21, 2012 at 12:57 pm #

    An interesting read albeit old news for the really informed people out there.
    We don’t have a high Aussie dollar as such – in reality the other currencies are collapsing in value in comparison. What’s it worth in reality – about 8 or 9c I think at the moment.
    Ditto precious metals – gold isn’t going up (certainly not right now !) in value – it’s that currencies are falling in value relative to it.
    In any case the current value of the dollar and who may or may not get elected next is academic.
    As we’re seeing most notably in the EU and USA, they just haven’t got a damn clue !
    Everything they try to do to fix the economic death spiral just makes it worse.
    2 dozen or so attempts since the GFC and look at the Eurozone now. Record unpayable debt, most countries insolvent and in recession or depression, record unemployment.
    You just can’t trust politicians, regardless of who they are, to understand or have the slightest ability to fix the problems. They’re not in power for that – they’re there for their own power plays, nothing more.
    Take Ron Paul – seems (on the surface, but I have my doubts) to be a good next US President. BUT..all promises,rhetoric and good intentions aside, how can he possibly address a $200T+ funded/unfunded liability debt AND make serious inroads into existing problems like unemployment,homelessness and domestic GDP within the next few years, so that said problems can be resolved expediently. Realistically he can’t. Slash, what, $2T off military expenditure per year and you barely scratch the surface of $200T.
    They don’t have 10-20 years to fix this – 47 million unemployed can’t wait that long !!
    Rock and a hard place x 100.
    As I’ve been saying for 2 years, we’re not safe at all in Australia. The government and media started off saying we’re safe from world woes, then their stand shifted slightly to “remote risk”, then to slight risk, then to moderate risk and now significant risk (ie reality).
    Oh really ? Like I said all along eh…
    We’re part of the same fundamentally flawed FAT money system and still rely on imports/exports/foreign credit etc just like everybody else so we can’t possibly be safe !
    Politicians as usual pretend everything’s well until it’s obvious to all that it’s not.
    Well it sure looks like next month will be D-day and the ultimate wake-up call for those few remaining sheeple, as the whole system comes apart like a cheap chinese suit.

    Have an election – vote for any party you want – but if you think they have a snowflakes chance in hell of coping with global systemic financial collapse, you’re in for one hell of a shock.

  8. Mark D February 21, 2012 at 1:10 pm #

    While i will say I am not of the intellect of most in here I am 40 & have been running small businesses for 18 years, (3-5mil) & one for an american Co for 11 yrs.
    One thing I firmly believe no matter what scale the operation is if you do not have varied stock on the shelf or expertise in skills to sell your days as a succesfull/profitable business are numbered.
    Im sure there are many & complex reasons companies & countries economies fail but usually in most cases if you track it back the answer is very un-complicated, they did not get the core neccesities
    ( bread & butter ) balance correct.

    Rgds: Mark D
    P.S I also will be voting for Katter for his policies regarding the
    rediculous domination of the big 2 retailers.

  9. kelly liddle February 21, 2012 at 2:51 pm #

    There are a few reasons that our dollar might be rising and our higher Fed Gov debt ratings are a problem as this attracts money and the only logical reason for this rating is that our market now has liquidity due to a large government debt where as when Costello was running the show there was bugger all debt. Another aspect is favourable treatment of foreign investments such as not having to pay capital gains if you are a foreigner which is something bad that was introduced by Costello. Foreigners should recieve no favourable tax treatments and nor should they be punished just one rule for all.

  10. Ian Davies February 22, 2012 at 12:27 pm #

    So you think they don’t get it? Have you bothered to look at what they are doing?
    All part of the plan, “sustainable economics”, green jobs transition, Juliar’s transformation of the economy.
    Job losses, Industry closure just part of the transition & the high dollar is part of the plan. The Global LEFT running this scam will never let KAP or LNP start Economic growth without a massive Union fight. Don’t waste your vote on KAP, you need a much bigger network to fight this U.N, S.I scam.

    • The Blissful Ignoramus February 22, 2012 at 3:05 pm #

      Where do you suggest wasting your vote, Ian?

      • Ian Davies February 22, 2012 at 9:34 pm #

        Don’t waste your vote on KAP, was my comment. If you would like to waste your vote I would Donkey vote Labor.

  11. Dan February 22, 2012 at 10:27 pm #

    AUD and interest rates are too sides of the same coin. We are getting inflation exported to us by US though china. Take the AUD down and oil goes to 2$ + a litre. You just trade one problem for another. Thats the problem with complex systems is that you take the pressure off one point and it just moves to another. Its a real pity we cant divorce politics and finance, they should never mix.

    But if we go down the Norway solution we need to act like them and nationalise all the mines in Australia. Just like they did with the oil. 🙂

  12. Twodogs February 23, 2012 at 2:59 pm #

    Why doesn’t the RBA simply have a target exchange rate range, and act accordingly? If they sell AUD when speculators are buying high, and buy AUD when speculators are selling, they can not only cushion the volatility, but make money for the government by selling AUD high and buying low.

    I believe in a floating currency to avoid government distortion, but believe in intervention to undistort private distortion by the currency speculators.

  13. helen heng June 4, 2012 at 5:57 pm #

    vote Katter Australia seriously needs change. Labor is leading us the way of Greece

  14. mick June 23, 2012 at 4:18 pm #

    I am amazed that there are folk out there who are not totally stupid or stooges of either side of government. The ‘Kings New Clothes’ may have been a fairy tale but just take a look at our politics.

    Having stood on the sidelines and watched the slow death of manufacturing indistries in Australia and the ongoing reliance of imported goods from China I have asked my self many times what happens when China stops purchasing minerals from us? They have already stockpiled and are trying to purchase their own mines in a similar fashion to how China is purchasing freehold farming land in Australia. It has been established that produce from this purchase will not be liable for one single dollar to Australians. In a similar fashion owning mining assets may achieve the same end if owned by the (Chinese) state. Put all these together: China purchasing less minerals and at a significantly lower cost, its own mines in Australia and free food. So how then do we pay for our imports, something which we will be forced to continue because we have no manufacturing industry left, have no skills to quickly set one up again and have previous few exports in a land whose population has been ramped up to 50 million with the support from both sides of government? Please explain!!

    What I do not understand is what is going to happen to the AU$ when the printing presses in the US and in Europe cause hyperinflation in these regions and this one needs some clarification if there is anyone on this blog who has sufficient understanding to tackle it.

    Greta blog. More please.


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