The whole idea of central banks taking over rate settings has been a dismal failure from the start, in any company etc if you have 2 separate entities vying to control money, in this case the Fed Gov & the RBA, conflicts in direction & purpose ultimately collide which in many instances produce their own negative effects adding to existing problems thus making bad worse.
Sure, it was probably a good idea to trial at the time but given the dismal results on numerous occasions it’s time to revert back to Gov control, after all we elect a Government to run a country so why not let it do it in its entirety & not with one arm tied behind it’s back.

It truly worries me that we have learnt nothing from the catastrophic way the US economy has & continues to unravel, Australia seems hell bent on jumping off the same cliff. Unfortunately many Australians are believing the hype that salvation & great times are just around the corner being preached by all types of people in all types of positions BUT with one common denominator which is having a vested interest in people believing them whether it be financial political or business related.

The very idea that Australia can prosper without the rest of the world thinking China will carry us all into the light blue yonder is a great theory but alas that’s all it is. There’s no disputing that Aust has done nicely clinging to Chinas apron thus far but to anyone who knows or understands what’s going on in China & more to the point are brewing know all too well how things do & will change sometimes in a heartbeat.
China is still in it’s infancy with no hope of achieving the same level of existance many of us were lucky enough enough to enjoy soley by the means of cheap fossil fuels & to now expect Chinas internal demand to replace the loss of a huge slice of profits care of the US middle class spending is pie in the sky stuff to put it mildly.

I had been(foolishly) hoping that the few credible dynamic people left in Australian politics would have shed their political parties & formed another viable political party with the priority of geting back to basics & do what needs to be done. The vast majority of voters no-matter their persuassion are sick to death of the way Aust has been governed & the attitude of politicians in general with various Governments. Something has to change & it will eventually, I just hope it can be done peacefully, if Australia ever needed a decisive grass roots political party with the credibility to win an election it is now.

I would urge everyone who wants to know for themselves what’s going on, not just in China but in all the economies to do their own research because what I have heard that some investors have been told in order to obtain their hard earned money is straight out of fantasy land.

For gods & your own sakes if you’re in the stock market, whether you’re a bull or a bear, a skeptic or a cynic, whatever or whoever you are make certain you have your exit strategies in place.

Finally, believe no-one when it comes to wanting your money, we all like a good return however safety & security are especially paramount now, the world has NEVER experienced the size & scope of this fiasco EVER so no-one can tell you with any accuracy what will happen but you can bet we are all in for one hell of a ride at least, at worst heaven bloody help us. This is a serious
situation & potentially life changing, let no-one try to convince you otherwise.

My best to you all & good luck.

Actually a while back Barnaby Joyce asked Ken Henry a good question about debt and interest rates. He was asking basically where all the money would come from to fund all the massive debt being piled up by governments around the world and also if interest rates would rise because of the demand for all this money.

Ken Henry basically said there was nothing to worry about.

Mmmm….