Australia will be a casualty of the currency wars

[crewy]

"So next year Australian businesses and investors should see a unique combination: a persistently high exchange rate and historically low interest rates.

In simple terms, this means weak manufacturing and strong housing, with higher unemployment limiting the recovery in housing. GDP growth is likely to weaken and there will continue to be a big gap between business and consumer confidence - because consumers win from a high dollar but businesses, on the whole, lose."

http://www.abc.net.au/news/2012-12-19/kohler-currency-wars/4435690

High AUD, low IR, High cost of housing, low manufacturing output = Screwed

 

[mmm....shiney!]

You've got me turning up and turning down and turning in and turning 'round

I'm turning Japanese I think I'm turning Japanese I really think so

Now, where did I put my small dog?

 

[Silverthorn]

can't see housing doing any good unless the capital comes from overseas. savers/ings will shift out of banks as opportunity costs vanish.